Chery Confirms 2024 Production Start in Spain After Delays

Chery Greenlights 2024 Vehicle Production in Spain

Chinese automaker Chery has confirmed its plan to commence vehicle production in Spain "as soon as possible" within 2024, marking the launch of its first manufacturing facility in Europe. The announcement comes after a series of postponements that had previously pushed the operational timeline into 2026, citing commercial reasons and EU tariffs on Chinese EVs.

Situational Overview

The project is structured as a joint venture with Spanish carmaker Ebro at a former Nissan plant in Barcelona. While Chery is still "revving up" its plans, according to EU CEO Zhu Shaodong, the move aligns with a broader trend of Chinese automakers gaining market share in Spain amid a global EV price war. Local Spanish authorities have lauded the investment as a positive step in strengthening commercial ties between Spain and China.

Economic and Market Impact

Chery's local production in Spain serves as a strategic maneuver to mitigate potential European Union tariffs on imported vehicles. The investment revitalizes a former automotive plant, boosting the local economy and reinforcing Spain's position as Europe's second-largest car manufacturer. This development is expected to increase competition in the European EV market by providing a more direct supply chain for Chery's vehicles into the continent.

Summary and Outlook

By establishing a manufacturing base within the EU, Chery is positioning itself to navigate trade barriers and compete more effectively in the European market. While an exact quarter for the production start has not been specified, the commitment to a 2024 launch signals the company's firm intention to expand its European presence. The industry will be watching closely to see how this impacts market dynamics and pricing.

FAQ

Q: When will Chery's factory in Spain start production?
A: A top executive confirmed that production of its own vehicles will start "as soon as possible" in 2024.

Q: Why was the production timeline previously delayed?
A: The company cited commercial reasons and the context of potential European Union tariffs on Chinese-made electric vehicles.

Source: Investing.com