Chinese cars could save Nissan Barcelona soon

Chery, the Chinese automaker, has signed an agreement of intent to use the former Nissan factory in Barcelona's free zone to produce up to 50,000 cars for the European market. Instead of using its own factory, Chery plans to use the decarbonization hub, run by BTech in conjunction with QEV, for local assembly.

This agreement was signed yesterday in China by Zhu Shaodong, deputy director of Chery International, and Rafael Ruiz, CEO of BTech.

The Tribuna de Automoción points out that a process of evaluation of the business plan is underway, in particular by Chery, to determine the possibility of a collaboration between the parties. The production start date, however, will depend on the government's support policy.

Although the unions and the Department of Generalitat Affairs have welcomed this new project, they call for caution because it is only an agreement of intent.

Miguel Ruiz of the Sigen-Sir Usoc union said it would strengthen the hub project, generate revenue and speed up the redeployment of ex-Nissan staff. Likewise, for Javier Pacheco, secretary general of CC.OO. of Catalonia, this would be wise for the Chinese company in its strategy of entering the European market, and would constitute an opportunity for the industrial project of the hub.

Kitting, not manufacturing

The objective of Chery and the hub is to carry out the assembly of models of the Omoda brand from China using the CKD (Completely Knock Down) mode, in the facilities of the former Nissan factory.

chery omoda 5

CKDs are sets of individual parts needed to build a complete vehicle at the customer's factory. Instead of producing cars entirely, this type of factory receives cars in kit form and takes care of the final assembly. There are different levels of CKD, with some being more complex than others.

Chery has considered manufacturing models in a free zone in the past. At the end of 2022, the Chinese company showed great interest in Nissan land in the Barcelona free zone, but it was slow to present its plan.

If this materializes, it would be the second such plant in Europe to assemble Chery-branded models. Currently, Chery cars are sold in Europe under the Italian brand DR. This Italian company has a CKD assembly plant in Italy which can accommodate up to 100 Chery cars from China per day.

DR also adapts the cars for the European market and sells them under the DR Automobiles brand, emphasizing the brand's Italian character. In 2022, DR Automobiles sold nearly 25,000 cars in Italy, France, Germany and Spain.