Chery accelerates its landing in Europe and finalizes the award of its second factory in the Old Continent to Türkiye, as confirmed by sources close to the situation in conversations with OKDIARIO. The automobile manufacturer is in the final stage of talks with Ankara for the installation of a new electric and plug-in hybrid vehicle factory in the country pending the allocation of land and the granting of tax exemptions.
According to the aforementioned sources, at the moment, the investment planned by the Chinese automobile manufacturer and the schedule to reach a final agreement between the Government of Tayyip Erdogan and the president of Chery International, Guibing Zhang. OKDIARIO It has been able to confirm that Turkey requires the Chinese giant to produce a minimum of 150,000 units per year in exchange for selling a certain number of vehicles in the local market without paying any type of tariff.
The decision is in an advanced phase, but it is not final, since the manufacturer is still evaluating the definitive impact they will have for its products. operations in the European market the application of tariffs on the import of 100% electric vehicles from China imposed by Brussels.
This new standard of European Commission (EC) to control the illegal subsidies of the Chinese Government to car manufacturers has forced Chery’s production plans in Spain to be delayed and could benefit Turkey, since Erdogan’s Executive paralyzed the application of new rates to this type of engines from of the Asian country. A measure that has already attracted investment for a BYD factory in 1 billion dollars and an annual capacity of 150,000 assemblies.
Specifically, Chery has delayed the assembly of the Omoda 5 with electrical technology at the Ebro Factory in the Barcelona Free Zone. The group’s plans include the production of up to 150,000 vehicles in Spain by 2029 and the hiring of 1,250 workers who were laid off as part of the closure of the Nissan factory four years ago, although there is currently friction with the unions over the number of jobs that will have full-time contracts.
Chery seeks another factory in Europe
Today, the Chinese giant has about tariffs of more than 38% -plus the 10% that applied until the middle of this year- to the import of 100% electric vehicles, although negotiations are still continuing between Brussels and Beijing to try to reduce trade frictions between both countries. These obstacles have forced European and Chinese car manufacturers to reexamine their plans for landing and selling their vehicles in the region.
Türkiye, home of manufacturing facilities Ford, Stellantis, Renault, Toyota y Hyundaicould produce up to 2 million vehicles a year with a third of the capacity allocated to commercial vehicles, according to data from automakers associations.
Prices after tariffs
Even with Brussels applying tariffs starting next November, some Chinese manufacturers, such as MG, BYD or your own Omodawarn that they will maintain the prices of their 100% electric vehicles to the detriment of their value chainsince, for brands, there is an additional cost that they are forced to absorb in order not to lose market share in the midst of landing on the Old Continent.
