‘Euro’ Omodas intrigue local distributor
/Parent of latest Chinese makes here is looking at producing cars in Europe.
HAVING become attuned to taking out of China cars with perceived and real European and English heritage - MG, Polestar, Lotus and Volvo among them - there’s every chance Kiwis would be just as keen on accepting Chinese cars out of Europe.
That’s the view of Sheldon Humphries, brand manager for Omoda and Jaecoo, new makes for New Zealand that presently come here from China but might not always.
Humphries is intrigued by reports that the the brands’ parent, Chery, is looking at beginning vehicle production in Spain and potentially also in Italy.
Nothing has been confirmed, but Chery has said it sees definite benefit from having factories outside its homeland.
Speaking at last night’s launch of the Omoda 5, Chery’s first car in NZ since it left our market 10 years ago, Humphries said the product flow from China is as good as it gets.
Yet, at same token, the benefits of internationalism were clear so, if opportunity to take vehicles that could represent the crossover and SUV specialist sister makes from somewhere else as well, he’d definitely give it consideration.
“I would never say no.
“At the end of the day, if there's a product that suits our market and that we see an opportunity for, we will put our hand out for it.
“We will always put forward what can be for the best interest of a consumer market.”
The plant in Spain seems to be all but a done deal, and Chery could start production smartly as their eyes are on a former Nissan car plant in Barcelona.
This facility has a Kiwi link, as it once provide a previous-generation Pathfinder andNavara utility to here and Australia.
It is anticipated the Chery opportunity could create as many as 1600 jobs, while also giving Chery an important European base from which to build and distribute its cars.
After Nissan ceased production there the plant was partially handed over to Spanish motorcycle manufacturer Silence and global engineering groups QEV and EV Motors, which planned to turn the facility into a hub for EV production.
EV Motors acquired full control of the facility in March then entered talks with Chery, with the idea of a joint venture.
Automotive News Europe reports that EV Motors also plans to produce electric pick-ups and vans under its Ebro brand, which could involve potential production and commercial deals with Chery.
Chery is one of several Chinese manufacturers bringing lower-cost, mostly electric vehicles to Europe. It began selling cars in Spain earlier this year.
Chery is also reported to be in talks with the Italian government as it seeks to attract another major manufacturer to the country in addition to the multinational group Stellantis.
The electric car market is grappling with an aggressive price war and trade tensions between China and the European Union, which is investigating whether Chinese EV manufacturers benefit from unfair state subsidies.
Industry observers say establishing manufacturing capacity in Spain or Italy, where electric car sales are still relatively low, would fit Chery’s strategy of selling a mix of internal combustion and electrified cars.