Chinese firms to assemble EVs in Europe, duck tariffs

Chinese electric vehicle (EV) makers are pushing forward their plans to building production capacity in Europe in order to evade potential tariffs that would be imposed by the European Union.

Chery Automobile President Yin Tongyue said Sunday that his company will soon purchase an old plant of Nissan’s in Barcelona, Spain, and turn it into its first manufacturing site in Europe. He said the reopening of the facility, which stopped running in 2021, can create 1,600 jobs.

He said Chery is discussing partnerships with two European brands, with one of the deals to be closed soon. Chinese media said Chery is having a discussion with Stellantis, the Italian auto conglomerate that owns Fiat, Chrysler and Peugeot.

Spain’s Industry Ministry said an agreement for Chery to start production in the country will be formalized in the coming days.

Chery is still talking with the Italian government about building a factory there but there has been any update yet.

In the first quarter of this year, the number of the company’s exported cars rose 40.9% year-on-year to 253,418 units. The company is now focusing on markets in South America, the Middle East and Russia and will explore those in Spain, Italy Poland and the United Kingdom later this year.

Other key Chinese EV makers also have their manufacturing plans in Europe. Last December, the Shenzhen-based BYD said it will build a passenger car factory in Szeged, Hungary. It said the facility will be the first of its kind built by a Chinese automotive company in Europe and will have an advanced car production line.

Great Wall Motor said last year that it was mulling whether to locate its first European plant in Germany, Hungary or the Czech Republic.

SAIC Motor Corp said it was