Hitch Capital Advises on Negotiations for the Signing of a JV Between Ebro and Chery in the Zona Franca

Barcelona, April 16, 2024 – Chinese automotive group Chery and Spanish company EV Motors, which is leading the reindustrialization of the former Nissan plant in Barcelona, have reached an agreement that will allow the Chinese firm to manufacture vehicles at the Catalan facilities. This deal was advised by Hitch Capital, which supported the structuring of the alliance between both companies.

A Strategic Alliance for the European Automotive Industry

After intense negotiations in Wuhu, Chery’s headquarters, a deal was sealed, resulting in the creation of a joint venture, majority-owned by Ebro, a subsidiary of EV Motors. This new entity will be responsible for coordinating operations and activities at the Zona Franca plant in Barcelona, reinforcing the commitment to reindustrialization and sustainable mobility in Spain.

The agreement was signed by Pedro Calef, CEO of Ebro, and Guibing Zhang, Executive Vice President of Chery Automobile. The official signing ceremony of the investment will take place this Friday at the facilities, with the expected attendance of the Prime Minister of Spain, Pedro Sánchez, along with representatives from the Government of Catalonia and the Barcelona City Council.

A Key Step for Electric Vehicle Manufacturing in Spain

With this agreement, Chery becomes the first Chinese company to manufacture cars in Spain and Europe, at a time when Chinese automakers are increasing their presence in the European market.

The project includes the start of production of the electric Omoda 5 model at the plant, followed by the launch of Ebro’s first model in the fourth quarter of the year.

Roger Torrent, Catalonia’s Minister of Business, who oversaw the final stage of the negotiations in China, celebrated the agreement as a milestone in the reindustrialization process of the Zona Franca.

This agreement strengthens Barcelona’s position as a strategic automotive production hub and highlights the growing importance of electric mobility in Europe.