Chinese Chery Auto to Begin Production in Europe: Barcelona Factory Reopens with 1,600 New Jobs

The closest to starting production in Europe is the Chinese Chery Auto, which signed a joint venture last month with the Spanish EV Motors. In Barcelona, ​​the lines will start in the old factory of the Japanese Nissan, which was closed three years ago. Thus, 1,600 workers who were dismissed at the time can find work again.

Preparations continue apace. The head of EV Motors, Pedro Calef, said that production of the Chery Omoda 5 electric car will begin in the last quarter of this year, followed by joint production of the Spanish Ebro electric pickup at the beginning of the year. The factory plans to produce 50,000 cars per year within three years.

China’s BYD is building an even bigger production plant in Szeged, Hungary. The annual capacity is to start at 150,000 purely electric cars, the goal is to start in 2025. The importance of the investment in the amount of billions of euros is also confirmed by the fact that Hungary is among the countries that, as well as France. and Serbia, Chinese President Xi Jinping will visit these days.

BYD has been producing electric buses in the Hungarian city of Komárom since 2016, and the Chinese company CATL also produces batteries in the country.

Anyway, at the beginning of the year, BYD (from English Build Your Dreams – build your dreams – editor’s note) overtook the previous number one, the American Tesla, in sales of electric cars throughout the world. – world

The Chinese car manufacturer Dongfeng is now negotiating with the Italian government about the possibility of building the plant.

It is said that the best Chinese car brand MG is also considering a European factory on the old continent.

Cheaper Chinese cars will likely face serious competition from established brands including homegrown Škoda Auto and the Volkswagen Group. Even though Chinese electric cars are sold more expensively in Europe than in China, they can be bought for a price of 750,000 crowns, and, for example, you cannot buy a Škoda Enyaq for less than a million crowns even as a used one . .

“Chinese carmakers are setting up their own factories in Europe to be prepared for import restrictions that will almost certainly come in some form or another.” But at the same time, they want to build more local recognition and be closer to the target markets,” said Petr Knap, an expert on the automotive industry from EY, to Novinkám. According to him, maybe not just plants assembly which will be using parts imported from Asia.

“I don’t think they would bet only on imported parts. They will put together some locally made parts – mostly from Chinese suppliers who will come with them to Europe. This will allow them to demonstrate local origin, which will logically be one of the requirements to protect European business,” said Knap.

The European Commission has been investigating China’s state subsidies to the car industry since the fall. According to her, cars are imported cheaply thanks to state subsidies, so she is considering tightening market protection measures in retaliation. One possibility is to increase import duties above the current ten percent.

“Chinese automakers are gearing up to expand into several global markets. Even from the point of view of the planned role in part of the European market, the pressure to improve business and political relations makes sense. Having production capacity in Europe can help with this,” said Pavel Peterka, Roklen analyst. “Let’s not forget that the pressure to expand electromobility is largely political. Therefore, the measures taken by Chinese car companies may not be due to financial interests alone,” he said.

In 2012, Bulgaria’s Great Wall became the first Chinese car company to attempt manufacturing in the EU. These were pickups and SUVs with internal combustion engines. But the project ended with the bankruptcy of the Bulgarian partner and the end of production in 2016.