KONTAN.CO.ID - BARCELONA. China's Chery Auto has signed a joint venture deal with Spain's EV Motors to produce cars at its first factory in Europe, EV Motors and the Catalan regional government said on Tuesday. Cars will be produced later this year at a plant that Japanese carmaker Nissan shut down in 2021, helping to recover some of the 1,600 direct jobs lost as a result. Chery, the junior partner in the joint venture, will start producing its Omoda vehicles at the plant first, while majority stakeholder EV Motors will start producing its own vehicles in the fourth quarter, the Spanish company said.
"I see the step as a confirmation of Chery's clear commitment to Europe. This decision proves Chery has come to stay," Jochen Tueting, managing director for Chery Europe said in a statement. An event is scheduled to take place in Barcelona on Friday to formalise the deal. Read Also: Copper Retreats on Frail China Factory Data, Firm Dollar Spain - Europe's second-largest car producing nation after Germany - launched an ambitious plan in 2020 to attract electric vehicle and battery production to the country using European Union pandemic relief funds. Volkswagen and Renault are among companies that have announced investments since then. The electric car market is in the midst of an aggressive price war while the European Union is investigating whether Chinese EV makers benefit from unfair government subsidies.
