China’s Chery Auto is nearing a deal to start making cars in Spain, its first manufacturing site in Europe, the Spanish Government and lead negotiator EV Motors has said.
The Industry Ministry said in a statement it was confident that an agreement to start production in Barcelona would be formalised in the coming days.
The deal emerged after a Spanish delegation held positive talks with Chery last week in China, said a spokesperson for Barcelona-based EV Motors.
The talks are focused on Chery producing vehicles at the plant that Nissan shut down in 2021, helping to recover part of the 1,600 direct jobs lost as a result.
Chery did not immediately respond to a request for comment.
Catalonia’s regional government said last week that its senior business official travelled to China last Wednesday to meet with Chery executives.
The Industry Ministry declined to say whether Spain had offered any public aid to Chery.
Spain would open two tenders this year for companies to request a total of €1.7 billion in loans and grants for electric vehicle production under the so-called PERTE scheme of incentives that uses EU pandemic relief funds.
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.
EV Motors also plans to produce its pickups and electric vans under its Ebro brand, which could involve potential production and commercial deals with Chery, said one source with knowledge of the matter, without elaborating.
China’s BYD is building its first European passenger car plant in Hungary.
Reuters reported in March that the Italian Government was holding talks with Chery as part of efforts to attract another major automaker to the country in addition to the multinational group Stellantis.
Italy’s Industry Ministry has no information about Chery’s choice of Barcelona for its new plant, a government official said last Tuesday.
Chery remains in contact with Italian authorities, but has received little feedback, said an industry source who requested anonymity and confirmed talks are progressing with Spain.
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