Chery Automotive Brings New Life to Spanish Manufacturing: Former Nissan Plant Holds High Ambitions for the Brave New World ahead Chery Automotive, a Chinese carmaker, will soon begin production of vehicles at the former Nissan plant in Spain’s Barcelona. This is a venture which marks the opening of Chery’s first production base in Europe.
It will have a pivotal influence on Chery’s global strategy and structure. It represents not only Chery’s first move in Europe but changes the whole pattern of global auto manufacturing.
Chinese manufacturers are now looking for bases in Europe.The road to this point has consisted of lengthy negotiations and careful planning.
Following the signing of a commercial contract last year, Ebro-EV Motors undertook detailed talks with Chery to hammer out the terms of their partnership. After dozens of meetings between delegations from Spain and China, a 15-year agreement to invest about 400 million euros was signed in September by Chery and Ebro-EV Motors at Barcelona’s Zona Franca industrial zone.
This considerable degree of commitment makes a speech, announces where Chery stands on the long road of operation in Europe.
Renewed Development of a Historic Plant
Nissan closed down its plant in Barcelona at the end of 2021 and the last model produced by this historic factory was a Nissan e-NV200 electric van. Returns to the site’s vehicle-manufacturing glory came with Nissan’s arrival in 1983 below management of Jose Zitu, where it started making off-road cars like the Patrol.
The plant was previously managed by Spanish carmaker Ebro–now being revived as such brazenly demandsThe rebirth of the plant under this joint venture between Chery Automobile and Ebro-EV Motors not only gives the facility itself a new lease of life.
What makes and designates it as a “symbol”, as Spanish Prime Minister Pedro Sánchez put it, also symbolizes both Catalonia and Spain in general: turning industrial land into the lush “Zona Franca” district around Barcelon a.The significance of Chery’s involvement lies in the plant’s own history. The factory has been linked as far back an one can recall with manufacture of Spanish automobiles, even though it was for men of less importance in society. It has always been used for commercial vehicles by Spanish manufacturer Ebro. This dry fact assumes human interest when viewed against the business deal’s background.Steps and Economic Impact
Chery’s production schedule at the Barcelona plant is cautious and ambitious. As Ebro Chairman Rafael Ruiz’s remarks show, the project will employ up to 1,250 former Nissan workers who will pass down their knowledge of how things are made and who makes them to a new generation.
Human resource planning like this reflects sensitivity in the local society and acknowledgement of these people’s benefits to enterprise.To facilitate this escalating burden of work, and in response to complex realities about how international industrial operations get going, arrangements for the start-up date were changed as the schedule progressed.
While initial plans called for earlier commencement of factory operations Chery has now redesigned its timetable to begin building cars in Spain by the fourth quarter of 2025, as confirmed by Ebro’s chief executive Pedro Calef.
Nevertheless, the long-term prospect is still very optimistic. However, Chery plans to make the Barcelona plant one of the world’s major export bases for its production, and it is expected that toward 2029 the joint venture with Ebro-EV Motors will have output capacity for 150,000 vehicles p.a. European manufacturing is of enormous significance to Chery–this scale reflects that need. Planning within the Corporate
The plan of production involves a complex portfolio covering all market segments. The first Chery car to emerge from Barcelona will be its Omoda SUV 5, with early output especially concentrated on this top-of-the-range model. This is a strategic choice different from anything Chery currently makes in a bid to capture part of the consumption demand in Europe.
Ebro will begin manufacturing as well at the site. The revitalized Ebromondo brand–which went out of business in 1987–is set to release its first new SUV with both plug-in hybrid and gasoline this year. The next year will see Ebro produce between 20,000 and 30,000 vehicles, and sales initially concentrated in Spain and its neighbor Andorra.
This twin-brand strategy serves the interests of both companies. For Chery, it provides a European manufacturing base that might help it through potential tariff difficulties and provides local credentials. For Ebro, it means a return to the market for a historic Spanish brand with modern, competitive products–thanks to Chery’s technology and scale.
Market Context and Industry Implications
Chery’s decision to manufacture in Europe comes as the global auto industry undergoes some turmoil. Spain, recognized as Europe’s second biggest car producer following Germany, took a yearly European Union pandemic aid package designed specifically for electric car and battery production as an opportunity to attack this. Many manufacturers, such as Volkswagen and Renault, have already promised substantial investments into Spanish manufacturing under this scheme.
The present situation is particularly problematic from several perspectives. The worldwide electric car market is currently plunging into an aggressive price war with no winners emerging anywhere; in addition there has been talk among European Union officials about whether Chinese EV makers could get unfair government subsidies. By setting up factories on the ground in Europe, Chery may be positioning itself to counteract against any tariffs that might be levied on cars flowing directly from China.
A Human Story of International Cooperation
Behind the corporate press releases and sales targets lies a human story. Zhang Guibing, Executive Vice President of Chery, was reminded at the signing ceremony in Barcelona that “Europe is the home of the automotive industry and Spain has long been an attractive field for Chery. This plant will create thousands of local jobs.”
This personal commitment extends to the training and improvement of the work force. Former workers from Nissan now are engaged in a training program funded by local government to prepare for their new jobs in this venture. This investment in people is a perfect illustration of how international business collaborations can protect valuable skills and livelihoods through periods of industrial change.
Looking to the Future: European Expansion
The Barcelona facility is only the beginning of Chery’s European plans. It is also said to be talking with Volkswagen about expanding capacity for production in Germany, perhaps by taking over one of the automobile maker’s plants there that are scheduled for reduction as part of cost cutting measures. Chery’s European manufacturing footprint could then move further into the continent’s largest automotive market.
Ending 2025, Chery plans to have sales of its Omoda and Jaecoo brands in 19 European countries and regions, up from seven now. Market launches have already been completed for Germany and France, which are also on their way to being added to the company’s lineup.” Such impressive goals demonstrate Chery’s confidence in its European strategy.
A New Chapter in European Automotive Manufacturing
As business people, Chery’s new chapter in Barcelona marks the end of a simple extension. It signifies the re-birth of an historic site of manufacturing, retaining skilled jobs; the re-launch of a classic Spanish car brand, and China’s development from importer into exporter within established markets.
Ebro-EV Motors has teamed up with Chery in partnership. This joint venture reflects the ever more closely integrated nature of today’s global automotive industry. As traditional demarcations between manufacturers and markets, technologies blur; and collaborations such as this point to a future where international cooperation must be the order of business, both for tackling problems presenting themselves as well as for the potential advantages automotive manufacturing in general as a whole stand to gain.
For Barcelona, Spain as a whole, and Europe’s car industry, Chery’s arrival is both change and continuity. To begin with, it upholds manufacturing traditions brings in new technologies and approaches to marketing. As production is scaled up over coming years, the entire implications of this major move may be seated for some time yet; but it could well reshape Europe’s automotive map over the next few decades.