Chery Automobile plans to expand its vehicle production in Europe through a new partnership with an existing vehicle manufacturer, according to a Reuters report citing top executives at the company.
The Chinese automaker has already invested in a former Nissan assembly plant in Barcelona, Spain, through a joint venture with local automotive company Ebro. The company aims to produce 200,000 vehicles annually at this facility by 2029.
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Chery is now understood to be looking for a new partner in Europe, with the aim once again of making use of existing surplus production capacity to expand its manufacturing base in the region. This strategy helps reduce up-front investment costs, by providing the company with readily available vehicle production infrastructure.
Chery’s chairman, Yin Tongyue, told reporters at a recent launch event for the company’s Omoda and Jaecoo brands in France that the company “prefers to use existing production capacity instead of investing heavily in a new assembly plant. I hope we will have news to share with you in the coming months.”
Lionel Keogh, Chery’s chief commercial officer for France, told reporters on the sidelines of the event that Chery “is looking for other production capacities in Europe,” adding that the company is currently holding confidential talks with a number of European automakers without disclosing any names, saying only that France is on the list of potential production locations.
Chery is one of a growing number of Chinese automakers to have entered the European vehicle market in the last few years, putting pressure on existing manufacturers’ volumes. Last year, the company saw its European sales surge more than sixfold to over 120,000 vehicles.
