Nov 18, 2024

Chery’s made-in-Europe EVs will use local suppliers to avert tariffs

Chery Automobile’s Spanish partner, EV Motors, said it is working to secure locally made components for its joint venture with the Chinese automaker, so their vehicles can be marketed as European.
EV Motors announced plans with Chery earlier this year to produce combustion, hybrid and electric vehicles together at a former Nissan plant in Barcelona.
Local supplies would reduce import costs and improve productivity, EV Motors’ president, Rafael Ruiz, said in an interview. “We have analyzed this in great detail and are working to make the vehicle European,” he said.
Sourcing parts locally is doubly important since the European Union imposed steep tariffs on Chinese EV imports this month.
While the partners plan to assemble cars from kits at the Barcelona site, minimum content requirements must be met for them to be considered EU-made.
Earlier this year, Italy’s Antitrust Authority fined DR Automobiles €6 million for misleading consumers about the Chinese origin of its DR and EVO cars. The cars are produced by Chery, JAC and BAIC and are mostly manufactured in China, with minor finishing and assembly operations carried out in Italy.
Chery’s Omoda 5 EV faces delays due to tariffs
EV Motors’ Ebro brand is set to start output of conventionally powered SUVs this month, Ruiz said.
Chery delayed the production start of its flagship Omoda 5 EV in Barcelona to October 2025 in light of the tariffs, Bloomberg News has reported.
Initially, Ebro will assemble knocked down kits — prebuilt cars that arrive in sections. The Barcelona plant will have capacity to churn out one car every 10 minutes, Ruiz said.
Next year, the factory will open a line for “completely knocked-down” production, a step closer to full-scale manufacturing that will require sourcing many more components locally, Ruiz said.
In that process, the parts come disassembled and need to be welded, painted and reassembled in the country of import.
Ruiz expressed confidence that the Omoda 5 EV will not be subject to tariffs because it will be manufactured in Europe.
Spain is Europe’s second-largest auto producer after Germany and has a robust roster of suppliers ranging from makers of bumpers to stamping technologies and motors.
The Barcelona plant will start with 200 workers in two shifts, with a third shift set to be added in February. By 2026, the venture has pledged to employ as many as 1,250 people.
“We want to become a reference in the sector and an example of success,” Ruiz said.
Ebro, founded in 1954, was once part of Nissan. The company listed on Madrid’s BME Growth on Oct. 14 and had a market value of €406 million ($429 million) as of Nov. 14.

Source: autonews.com