The confirmation that SAIC, the parent company of MG, has chosen Spain (specifically Galicia) for its first car factory in Europe is not the first of its kind. And it might not be the last, reinforcing our country's stellar role in attracting capital and factories from automotive companies. Although some of the planned projects have lost momentum in recent weeks.
The first such incursion was by Chery, the Chinese group best known for owning brands like Omoda and Jaecco. In April 2024, it reached an agreement with the Spanish company Ebro EV Motors to produce automobiles in part of the facilities that Nissan abandoned in the Zona Franca de Barcelona. However, the project is delayed due to the need to obtain as many local components as possible, so far only Ebro models (with Chery technology) have been assembled. In this project, the Spanish side holds the majority of the capital in the joint venture created for this purpose.
Chinese capital is also behind Santana Factory, the plant located in Jaén that has started assembling models from the revived Santana Motor. It will also produce on-demand vehicles for interested manufacturers, specifically vans.
In both cases, these are productions with low added value since the automobiles, always of Chinese origin and technology, arrive almost finished in Spain. The idea is to gradually add more phases.
Meanwhile, Leapmotors, a partner of Stellantis in Europe, also confirmed that starting this year, it will assemble the SUV B10 at the Figueruelas plant. And later on, the compact BO5. Additionally, it will provide the technology and platform for an Opel branded electric SUV to be produced at the Zaragoza facilities from mid-2028.
From the same year, Leapmotor will also manufacture some of its vehicles at the Stellantis plant in Madrid. This decision has been crucial to ensure the future of the factory, which had no assigned product once the production of the Citroen C4 and C4 x, combustion and electric, currently assembled, ends.
As a counterpart, China could acquire 49% ownership of the Madrid plant through Leapmotor International, the joint venture it has with Stellantis for the sale and production of their vehicles outside China. In this joint venture, the company now led by Antonio Filosa holds 51%.
In addition to these projects, Chinese participation in two of the three gigafactories for electric car batteries being built in our country should be noted. On one hand, Envision's in Navalmoral de la Mata (Cáceres). On the other hand, the one being built equally by Stellantis and the giant CATL in Zaragoza.
Weeks ago, there were reports of Geely (owner of Volvo, Zeekr, or Polestar) showing interest in acquiring one of the three assembly lines at the Ford plant in Almussafes. Specifically, line 3 where the discontinued Mondeo, Galaxy, and S-Max models were produced. This plant currently only produces the Kuga SUV, and from 2028, it will be responsible for manufacturing a European and more compact version of the current Ford Bronco. However, the forecast is to produce only 183,000 units per year, and it is unclear if it will replace the current Kuga or complement it.
Meanwhile, other Chinese companies have also shown interest in establishing industrial operations in our country to bypass the EU's extra tariffs on electric cars imported from China. And to meet the made in Europe production requirements that Brussels will implement, necessary, for example, to qualify for purchase incentives.
Changan expressed interest in this regard months ago, and BYD has always considered Spain one of its favorite locations for its third factory in the Old Continent. The one in Hungary is about to start operations, and the second, planned for 2027, will be in Turkey.
However, Stella Li, the BYD vice president in charge of international expansion, has dampened the possibilities of our country regarding this project.
In statements to the Financial Times and the news agency Bloomberg, the executive acknowledged that they are in talks with Stellantis and other European manufacturers to acquire underutilized plants in the Old Continent.
In other words, a faster, simpler, and cheaper way than building a factory from scratch. A move that has run out of potential candidates in Spain once Leapmotor lands in Madrid and if the agreement between Geely and Ford to have the former take over the inactive part of Almussafes is confirmed.
Moreover, Bloomberg reports that BYD has already visited locations in France and Italy. Last year, the latter country produced 474,000 vehicles, according to Oica, compared to the 1.7 million at the beginning of the century.
In this regard, the agency stated that Stellantis is considering selling its Rennes factory in France, the Cassino plant in Italy, and another in Germany, which would remain with its former Chinese partner DongFeng.
None of this has been confirmed by the companies involved, although Stella Li has made it clear that they prefer to operate the plants independently rather than through joint ventures. "It is very difficult to partner and seek permission from someone else. We partner with each car manufacturer to sell them the battery or collaborate with them on different aspects... but not in manufacturing."