Chery Automobile, one of China's prominent car manufacturers, has officially kicked off vehicle production at its new joint venture with Ebro-EV Motors, situated at the Zona Franca area of Barcelona, Spain. The significant event took place on November 23, 2024, marking the rebirth of vehicle production at this facility, which was previously home to Nissan operations before closure in 2021.
This launch follows the agreement signed earlier this year to produce new electric vehicles, promising to create jobs and chances for innovation within the local automotive sector. The factory is expected to initially employ around 1,250 workers, and set ambitious production targets, with aims to roll out 50,000 vehicles by 2027 and ramping up to 150,000 by 2029. Rafael Ruiz, president of Ebro Motors, emphasized during the launch, "Thanks to cooperation among institutions, unions, investors, and Chery, we are giving life to a new generation of vehicles which seamlessly knit together historical legacy and innovation."
The factory's assembly process is beginning with the Direct KD (DKD) method, which involves shipping parts from China for final assembly in Spain. Eventually, the plan is to shift to Complete Knock Down (CKD) operations, incorporating local welding, painting, and more thorough assembly processes. This will allow for greater autonomy and local engagement as the venture matures.
The plant will initially manufacture three models. Among them are the electric and internal combustion engine (ICE) versions of the Omoda 5, as well as two plug-in hybrid SUVs under the Ebro brand. The opening ceremony showcased the S700 SUV, which is based on the Chery Tiggo 7 Pro. Following this model will be the S800 SUV, based on the Chery Tiggo 8 Plus, with production of the Omoda 5 slated to commence by the last quarter of 2025.
Chery’s Chairman, Yin Tongyue, also noted the strategic alliance with Ebro, saying, "Chery and Ebro join hands to pool the strengths of both companies and have committed to transforming the Ebro brand to become the main national automobile brand here in Spain." This ambition reflects Chery’s broader goals of establishing itself as a key player not only within the Spanish market but also throughout Europe.
Another exciting prospect on the horizon is the potential establishment of joint research and development (R&D) facilities in Barcelona, which could significantly boost the collaborative efforts between Chery and Ebro. Chery has been positioning itself to gain traction within European markets, and this partnership enhances their presence, especially considering they have already made history as the first Chinese automaker to set up production capabilities on the continent, notwithstanding other players like SAIC and Stellantis having previous operations.
Market interest is also brewing concerning how the vehicles produced will be distributed. A report by Xinhua indicated plans for 45 sales outlets throughout Spain, with 30 locations anticipated to be operational by the end of the current year, which aims to tap directlyinto the growing market for electric vehicles and hybrids across the region.
Historically significant, this venture not only revives the Ebro brand, which has been absent since 1987 but also coincides with its 70th anniversary, adding a layer of nostalgia and pride to the proceedings. The excitement surrounding the new developments conveys strong sentiments about the region's automotive future.
Overall, Chery's bold entry and commitment to sustainable vehicle production could set the tone for future Chinese investments and partnerships across Europe. The industry's trends toward electrification and sustainability resonate strongly with what consumers and markets are increasingly demanding.
