Chery, EV Motors form JV to build cars in Spain

BARCELONA -- China's Chery Auto has signed a joint venture deal with Spain's EV Motors to build cars in a former Nissan factory in Barcelona.

Chery, the junior partner in the joint venture, will start producing its Omoda vehicles at the plant first, while majority stakeholder EV Motors will start producing its own vehicles in the fourth quarter, the Spanish company said on Tuesday.

An event is scheduled to take place in Barcelona on Friday to formalize the deal.

"I see the step as a confirmation of Chery's clear commitment to Europe. This decision proves Chery has come to stay," said Jochen Tueting, managing director for Chery Europe.

Spanish authorities did not disclose if they had offered public aid to Chery, though Catalonia's government said it would finance training programs for Nissan's former workers to facilitate a quick transition.

"Chery's arrival to Barcelona will help Catalonia remain one of the main car producers," said the region's top business official Roger Torrent who recently met Chery executives in China.

Chery's interest in Nissan's former plant started in 2022, the regional government said.

The 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.

Six models planned

Chery's vehicle sales rose 53 percent to 1.9 million in 2023, the automaker said in a news release on April 2. Its export volume was 937,148 units.

Chery is currently rolling out in Europe its Omoda 5 compact crossover, its bestseller in China and its top export model. The Jaecoo 7 platform sibling will follow later this year.

The Omoda 5 powered by a 1.6-liter four-cylinder gasoline engine starts at below €30,000 while a full-electric version is priced just below €40,000.

Chery's European lineup from the two brands will grow to six models and five powertrain variants by the end of 2025, the automaker said in the April 2 release.

Spain's EV plan

Spain, which is Europe's second-largest car producing nation after Germany, launched an ambitious plan in 2020 to attract electric vehicle and battery production to the country using European Union pandemic relief funds. Volkswagen and Renault are among companies that have announced investments since then.

The electric car market is in the midst of an aggressive price war while the European Union is investigating whether Chinese EV makers benefit from unfair government subsidies.