Chery's Production Delay in Spain

BARCELONA (Reuters) – Chinese carmaker Chery will delay the start of vehicle production in Spain to the fourth quarter of 2025, according to an executive at its Spanish partner Ebro. This marks a delay of about a year from the previous schedule.

In September, Ebro mentioned that Chery would postpone production at its Barcelona plant, its first in Europe, until next year from the end of this year.

> "The project has not been cancelled. There has just been a readjustment," said Ebro's chief executive, Pedro Calef, in an interview at the plant.
> "We have reasons to believe we will have a solid relationship (with Chery) for years," he added.

Chery could not be contacted for comments outside Chinese business hours. Earlier, Ebro cited commercial reasons for the delay, including European Union tariffs on Chinese-made electric vehicles (EVs). However, Calef stated that the tariffs should not impact the joint venture, as production will occur in Europe. Notably, Spain abstained from the EU vote in October regarding increased tariffs on Chinese EVs.

The Chery-Ebro venture plans to produce up to 150,000 vehicles annually by 2029, establishing the Barcelona plant as one of Chery's major export facilities amid intense global market competition.

Previously, the plant was operated by Japanese carmaker Nissan until 2021 and had been used by Ebro before that. Ebro's Chairman Rafael Ruiz revealed that up to 1,250 former Nissan workers will be hired.

In separate news, the rebranded Ebro, which stopped sales in 1987, is set to produce its first SUV in both plug-in hybrid and petrol engine versions by the end of this year. They aim to manufacture between 20,000 and 30,000 vehicles next year, focusing sales in Spain and Andorra. Calef mentioned that pricing would be competitive, but further details were not disclosed.

Another Ebro SUV will be produced this year, and the delayed joint venture production will accelerate the introduction of a third Ebro model to mid-2025 from late 2025. The first vehicle produced by Chery in Barcelona will be its SUV Omoda 5.

Ebro anticipates revenue of around 330 million euros ($347 million) in 2025 and 1.1 billion euros by 2027, expecting core earnings of 22 million euros next year, marking the start of profitability. Ebro's holding company, EV Motors, was recently listed on Spain's stock market.

(This story has been refiled to correct a typo in paragraph 2)

($1 = 0.9519 euros)