China’s Chery picks Spain for first European factory in JV deal

Barcelona — China’s Chery Auto will produce vehicles in Spain, its first manufacturing site in Europe, after it signed a joint venture deal with Spanish manufacturer EV Motors, the latter said on Tuesday.

Cars will be produced later this year at the plant that Japanese carmaker Nissan shut down in 2021, helping to recover part of the 1,600 direct jobs lost.

The JV will be mostly participated by EV Motors, which will start producing its own vehicles in the fourth quarter after Chery has started production of its Omoda vehicles, the Spanish company said.

An event is scheduled to take place in Barcelona on on April 26 to formalise the deal.

Nissan’s main Barcelona plant was partially handed over to Spanish electric motorcycle maker Silence and local engineering groups QEV and EV Motors, which planned to turn it into a hub for electric vehicles.

EV Motors acquired full corporate control of the hub in March, and has played a key role in the talks with Chery because it would operate under the hub’s umbrella.

Reuters