Chery and EV Motors Aim for European-Made Status with Local Component Sourcing
Chery Automobile Co. is collaborating with EV Motors to manufacture vehicles in Spain. They aim to produce combustion, hybrid, and electric vehicles at a plant in Barcelona. EV Motors plans to source local components to market their cars as European-made.
Tariffs on Chinese electric vehicle (EV) imports impose extra urgency to find local supplies. The EU requires a certain level of local content for vehicles to be considered EU-made. In the past, an Italian company was fined for claiming that mainly Chinese-assembled vehicles were Italian-made.
EV Motors intends to start making traditional SUVs this month. The launch of their flagship Omoda 5 EV is delayed until October 2025 due to these tariffs.
The Barcelona factory will initially assemble cars from prebuilt kits. This site, formerly a Nissan factory, is 300,000 square meters. It can produce one vehicle every ten minutes. Next year, the plant will introduce a line for more complex production, requiring additional local component sourcing.
What are the benefits of local component sourcing for EV Motors in Spain?
Interview with Carlos Ruiz, President of EV Motors: A New Chapter for Automotive Manufacturing in Spain
News Directory 3: Thank you for joining us today, Carlos. Can you tell our readers about the collaboration between Chery Automobile Co. and EV Motors in Spain?
Carlos Ruiz: Thank you for having me. The collaboration with Chery Automobile Co. marks a significant step for EV Motors as we establish a manufacturing presence in Spain. Our goal is to produce a range of vehicles — combustion, hybrid, and electric — at our new plant in Barcelona. This partnership allows us to leverage Chery’s expertise in vehicle manufacturing while rooting our operations locally.
News Directory 3: How important is local component sourcing in this venture, especially with the current tariff situation on EV imports from China?
Carlos Ruiz: Local sourcing is absolutely crucial. The tariffs imposed on Chinese electric vehicles create an urgent need for us to find local supplies. The European Union has regulations that require vehicles to have a minimum level of local content to be classified as EU-made. We’ve learned from past experiences, such as the fines imposed on an Italian company for misrepresenting vehicle origin, that it’s essential to comply with these rules. By sourcing locally, we not only adhere to regulations but also bolster the local economy.
News Directory 3: What are the immediate plans for production at the Barcelona factory?
Carlos Ruiz: We will begin by assembling traditional SUVs from prebuilt kits within the month. This factory, which spans 300,000 square meters and was formerly a Nissan site, has the capacity to produce a vehicle every ten minutes. Although the launch of our flagship Omoda 5 EV has been delayed until October 2025, our first phase of production will get us quickly into the market with traditional models.
News Directory 3: There seems to be a significant emphasis on the local supply chain. Can you elaborate on how that will evolve?
Carlos Ruiz: Absolutely. In the coming year, as we transition to more complex production, we will increase our focus on local components. This strategy not only mitigates tariff risks but also strengthens our positioning in Spain’s robust automotive supply chain. With Spain being the second-largest auto producer in Europe, we are well-placed to build a successful operation.
News Directory 3: What is your staffing plan for the factory, and how do you envision EV Motors’ future in Spain?
Carlos Ruiz: We aim to start with 200 workers and plan to scale up to 1,250 by 2026. This growth will be crucial as we expand our production capabilities and product offerings. Our vision is for EV Motors to become a leader in the Spanish automotive sector, and we are highly committed to reaching that goal.
News Directory 3: Lastly, can you share some background about Ebro and its significance to this project?
Carlos Ruiz: Ebro has a rich history, having been founded in 1954 and previously part of Nissan. Now listed on Madrid’s BME Growth, with a market value of €406 million as of November 14, Ebro is ready to take on this new challenge. Our heritage and expertise in the automotive field position us uniquely to succeed in this collaboration with Chery and in the wider market.
News Directory 3: Thank you, Carlos. It sounds like an exciting time for EV Motors and the automotive industry in Spain.
Carlos Ruiz: Thank you! We’re excited about the future as well and look forward to bringing innovative vehicles to the European market.
Ruiz, the president of EV Motors, believes the Omoda 5 EV will avoid tariffs as it will be made in Europe. Spain is the second-largest auto producer in Europe and has a strong supply chain.
The factory will start with 200 workers and will expand to 1,250 by 2026. EV Motors aims to be a leader in the automotive sector in Spain.
Ebro, the brand under which they operate, was founded in 1954 and was once part of Nissan. Ebro is now listed on Madrid’s BME Growth, with a market value of €406 million as of November 14.