Omoda delays vehicle production in Spain until 2025

The Chinese manufacturer of the Omoda brand, part of the Chery automotive group, has decided to delay the production of its vehicles at the Ebro Factory in the Zona Franca of Barcelona until October 2025.

The manufacturer is still evaluating the definitive impact that the application of tariffs on electric vehicle imports will have on its operations. The European Union wants to make these tariffs permanent after the informal summit of heads of state and government to be held on November 8 in Budapest (Hungary).

Currently, the group faces tariffs of 38% (plus the 10% that was applied until mid-year) on vehicle imports. Negotiations between Brussels and Beijing are ongoing to try to reduce trade frictions. These obstacles have forced European and Chinese car manufacturers to reexamine their plans for launching and selling their vehicles in the region.

Despite delays in bringing the production of the electric range of Omoda 5 to Spain, the Ebro factory in the Zona Franca of Barcelona aims to start its activities on November 18.

In a few weeks, the Spanish commercial brand Ebro plans to start manufacturing the S700 and S800 models at the same plant in the Zona Franca of Barcelona. Each model will have two versions: one gasoline and one plug-in hybrid. Additionally, during the first part of the year, the automotive group will begin producing the S400 model, and by late 2025, it aims to have a "reduced size" version ready.

Initially, the factory will have a direct assembly line at the plant in Barcelona to "reindustrialize the area as soon as possible" by finishing manufacturing pre-assembled vehicles imported from China. Meanwhile, Ebro's CEO Pedro Calef stated last week that they are working on creating a complete vehicle production line.

The group's plans include producing up to 150,000 vehicles in Spain by 2029 and hiring 1,250 workers who were laid off as part of Nissan's factory closure four years ago. However, there are currently frictions with unions over the number of full-time job contracts.

Even with tariffs applied, some Chinese manufacturers warn that they will maintain their vehicle prices for now, at the expense of their value chain since "there is an additional cost that will need to be absorbed," as industry sources told Europa Press.

BYD and Omoda/Jaecoo (Chery) will not pass on cost increases to final prices because they say they cannot allow "some decisions to affect the end customer" since their goal is to promote "car acquisition."