Chery Announces Imminent Deal to Assemble Cars at Former Nissan Factory in Barcelona

Chinese automobile manufacturer Chery has announced an imminent deal for its arrival at the former Nissan factory in the Zona Franca area. The Asian company will create a joint venture with the Spanish company Btech, the current tenant of the Barcelona factory, to assemble its Omoda electric vehicles. Btech executives are currently in China, where they hope to finalize the last details of the agreement.

Omoda Spain, Chery’s subsidiary in Spain, has publicly called for an event next Friday, April 19, anticipating the attendance of Spanish Prime Minister Pedro Sánchez, high-ranking officials from the Govern de la Generalitat de Catalunya, and the Barcelona City Council. However, the agreement is not yet 100% closed, as confirmed by the government, the Generalitat, and Btech, though they expect to finalize it shortly.

The long search for an industrial heir to Nissan in Barcelona’s Zona Franca is about to end. A Japanese firm left in December 2021, and a Chinese one will arrive in 2024 to ensure that cars continue to be assembled in the outskirts of Barcelona. The agreement between Btech and Chery would guarantee the jobs of 600 former Nissan workers who have already been hired and are preparing the facilities, inactive for two years. In addition to promising more hires.

Chery’s arrival in Barcelona and its long-term involvement in the Btech project is essential for its survival, at least in the same scale initially proposed to fill the void left by Nissan. “The agreement for the Chinese multinational to set up in the Zona Franca represents a significant investment and the creation of more than 1,000 direct jobs. The Minister of Industry highly values the boost it will give to the automotive sector, job creation, and the transition to electric mobility,” said the Industry sources.

The Shadow of Great Wall
The Japanese announced in May 2020 their intention to close their factories in Catalonia after decades of activity. Since then, the search for a successor has been tortuous, filled with delays, and some disappointments. The memory of another major Asian manufacturer, Great Wall Motors, which was initially the great hope to replace Nissan with its own vehicle factory, still lingers in the minds of the 2,500 workers who lost their jobs.

Now, after more than a little back-and-forth — at one point, a factory to repair military armored vehicles was considered — Chery is the only and significant industrial candidate. Its productions can provide activity and employment to the 300,000 square meters awaiting in Zona Franca.

This isn’t the first time this name has been associated with Catalonia, nor the first time a representative of the Generalitat has traveled to China to try to secure its landing. An attempt was made in 2010 by then-president José Montilla, when Nissan first signaled closure intentions. The socialist returned from the Asian giant without concrete commitments, and now Torrent aims to close that deal with guarantees. The return flight of the conseller lands next Tuesday, a timing that would fit and make possible the grand event announced by Chery’s Spanish subsidiary for Friday.

The involvement of the Ministry of Industry has also been decisive. In its arsenal of arguments to prevent Chery from moving to other European locations — some reports placed its interests in Italy — are the resources from the different PERTEs. “The agreement for the Chinese multinational to set up in the Zona Franca represents a significant investment and the creation of more than 1,000 direct jobs. The Minister of Industry highly values the boost it will give to the automotive sector, job creation, and the transition to electric mobility,” sources from the Ministry led by the former Barcelona mayor Jordi Hereu point out.

Chery’s landing comes with the approval of part of Barcelona’s economic players. The unions view it positively, eager for a project with financial muscle that ensures the long-term viability of their contracts, something that has been scarce among the candidates that have emerged. And from the employer’s bank, the Chinese firm arrives with the sympathies of the historic employer’s association Foment del Treball, which also previously tried to link other companies to the Zona Franca lands. In this case, the president of the metal employers’ association UPM, Jaume Roura, has sponsored Chery and has been pressing for months for the Administration to prioritize its project.

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