- The brand could start assembling models in a factory currently occupied by three local companies.
- It is unclear if the Spanish government has offered public aid to Chery.
- Chery previously held talks with the Italian government, but no agreement was reached.
Chery Auto is looking to begin assembling models in Europe for the first time and might use a plant in Barcelona, Spain that was shut down by Nissan in 2021.
Since Nissan shut down the plant, local electric motorcycle manufacturer Silence has been operating there, as have engineering groups QEV and EV Motors. As it stands, EV Motors has full corporate control of the hub and has been engaged in talks with Chery.
If a deal is reached, EV Motors would continue to operate out of the factory and may ink production and commercial deals with Chery to produce its Ebro-branded pickups and electric vans.
Read: Look Out Fiat, China’s Chery Wants To Build Cars In Your Back Yard
The regional government of Catalonia is sending business officials to China this week to speak with Chery executives. It remains unclear if the Spanish government will offer any public aid to Chery, but it’s opening two tenders this year, inviting companies to request a total of €1.7 billion ($1.8 billion) in loans and grants for electric vehicle production.
It is not yet clear which models Chery intends to begin manufacturing in Europe nor how many units it expects to produce annually.
The Chinese carmaker was known to be in talks with the Italian government and had considered setting up its European base there. An industry source recently told Auto News that while Chery remains in contact with authorities in Italy, it has received little feedback and appears to now favor Spain.
Italy is eager to boost its car-building output to roughly 1.3 million units from less than 800,000. Stellantis will play an important role in increasing car production in the country through the Fiat and Alfa Romeo brands but the government is also looking to attract newcomers to its shores. Italian authorities have already spoken with Tesla, Great Wall, and BYD.
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