Chery Set to Begin Vehicle Production in Barcelona, Spain

Chery Set to Begin Vehicle Production in Barcelona, Spain

Will Chery’s entry into the European market disrupt the status quo and pave the way for an electric vehicle revolution on the continent?

The Spanish government is on the verge of finalizing a deal with Chinese manufacturer Chery to establish a vehicle production facility in Barcelona. This move is expected to create numerous job opportunities and provide Chery with a crucial base for its European operations.

The Spanish government is in the final stages of negotiations with Chery, a Chinese automaker, to establish a vehicle production facility in Barcelona. This exciting opportunity has the potential to create approximately 1600 new jobs, providing a significant boost to the local economy. Additionally, for Chery, it represents a strategic move that would give them a strong foothold in the European market.

Positive talks between the Spanish government and Chery indicate that an agreement will be reached in the coming days. The finer details of the deal, including any potential public aid offered to Chery, have not been disclosed. However, it is clear that both parties are committed to making this collaboration a success.

As part of Spain’s efforts to promote electric vehicle production and boost economic recovery, two tenders will be opened this year. These tenders will allow companies to request a total of €1.7 billion in loans and grants under the PERTE scheme, which utilizes funds from the European Union’s pandemic relief program. This initiative demonstrates Spain’s dedication to fostering sustainable and innovative industries.

The former Nissan facility in Barcelona has already undergone significant transformations. It is now being shared by Spanish motorcycle manufacturer Silence, as well as global engineering groups QEV and EV Motors. EV Motors, in particular, has taken over control of the plant and has played a crucial role in the talks with Chery. Their involvement is instrumental in creating a conducive environment for Chery’s operations within the EV production hub.

Chery is among the Chinese automakers that are venturing into the European market with their affordable, predominantly electric vehicles. They have recently started selling cars in Spain, and this collaboration with the Spanish government is another step towards expanding their presence in Europe. By establishing a manufacturing base in Barcelona, Chery aims to cater to the growing demand for both traditional and electric vehicles.

Furthermore, Chery is reportedly engaged in discussions with the Italian government to explore opportunities for manufacturing expansion in Italy. Italy’s Industry Ministry has confirmed that they have no knowledge of Chery’s choice of Barcelona for their new production plan. If successful, this expansion would enable Chery to tap into the Italian market, complementing their existing partnerships and collaborations.

The electric car market in Europe is currently facing fierce competition and trade tensions between China and the European Union. Amid this challenging landscape, Chery’s decision to establish manufacturing capacity in Spain or Italy seems strategic. These markets still have relatively low electric vehicle sales, making them attractive for Chery’s approach of offering a diverse range of vehicles, including both combustion and electric options.

  • Spanish government nearing a deal with Chery for vehicle production in Barcelona
  • Opportunity could result in 1600 new jobs and expand Chery’s presence in Europe
  • Agreement to be formalized soon after positive talks with Chery
  • Spain offering incentives for electric vehicle production under the PERTE scheme
  • Former Nissan facility in Barcelona already being transformed into an EV production hub
  • Chery plans to bring affordable electric vehicles to the European market
  • Also in talks with the Italian government for potential manufacturing expansion

The impending deal between the Spanish government and Chery holds great potential for both parties. With the creation of numerous jobs and the establishment of a European base, this collaboration is set to contribute positively to the automotive industry and the economy at large. As the electric vehicle market continues to evolve, Chery’s expansion into Spain and potential expansion into Italy demonstrates their commitment to innovation and meeting the diverse needs of consumers. It will be fascinating to see the future developments of this partnership.