Market opens in Spain amidst industry crises

The EU’s threatened protective tariffs are attracting Chinese car manufacturers to Spain for production. The president of the Spanish car manufacturers’ association resigned in protest against the government’s policies. Chery, a Chinese car manufacturer, plans to produce electric cars on Spanish soil by the end of the year. They will utilize a Nissan factory in Barcelona that is set to close in 2021.

Spanish Prime Minister Pedro Sánchez signed a contract with Chery in April, marking a new era of cooperation with Chinese manufacturers. This move could make Spain a gateway for Chinese electric models in Europe, allowing them to bypass EU tariffs. The investment for Chery’s establishment in Catalonia is expected to be around 400 million euros, with state and regional funding covering most of the costs.

While the deal with Chery is seen as a positive step towards job creation and industrial development by the Spanish government, it has led to criticism from the Spanish automobile industry. The umbrella organization of Spanish automobile manufacturers, Anfac, expressed concerns over the lack of support for the domestic industry in transitioning to electric vehicles. The move towards electromobility is posing challenges for the industry, with some companies being forced to cut jobs and adjust production.

Chery’s plans in Spain include producing electric vehicles in collaboration with its Spanish partner Ebro. The establishment of Chery in Europe is part of a larger trend, with other Chinese manufacturers like BYD also expanding their presence in the region. The Stellantis Group, formed from the merger of Fiat Chrysler and PSA, is also exploring partnerships with Chinese electric car manufacturers in Europe.

Despite the challenges posed by EU tariffs and industry transitions, Chinese car manufacturers are investing in production facilities in Europe, signaling a shift in the global automotive industry landscape.