EBRO Aims to Double Car Production in Barcelona and Boost Profit in 2024
EBRO's Expansion Plans and Strategic Partnerships
By Joan Faus
Production Targets and Profit Outlook
BARCELONA, May 6 (Reuters) - Spanish carmaker EBRO aims to manufacture between 25,000 and 30,000 cars in Barcelona this year, which could double the number of vehicles sold, and it also expects to swing to a net profit, its chairman said on Wednesday.
EBRO had ceased sales in 1987 until its relaunch in 2024. It is currently manufacturing four models and sold around 14,000 vehicles last year.
Joint Venture with Chery and Manufacturing Developments
The company also has a 60% stake in a joint venture with Chinese carmaker Chery to manufacture vehicles at a former Nissan plant in Barcelona.
Chery Production Timeline and Model Integration
Chery would start production there at the end of this year or the first quarter of 2027, EBRO's chairman Rafael Ruiz told reporters on the sidelines of an event in the Catalan city. The targeted production level of up to 30,000 cars this year could include Chery models, he added.
Electric Vehicle Manufacturing and Alliance Details
Ruiz said that a Chery electric car would definitely be manufactured in Barcelona and played down the fact that the start of production has suffered a series of delays with commercial reasons cited, including European Union tariffs on Chinese-made electric vehicles (EVs).
EBRO's Prioritization and Plant Capacity
"We have given priority to the EBRO vehicles to launch them as soon as possible industrially and we have been sequencing the capacity that we have had," Ruiz said, describing the alliance with Chery as "magnificent" and noting that the plant, which directly employs 1,600 people, could produce up to 200,000 cars annually.
Financial Performance and Market Context
After posting a net loss of 16.3 million euros ($19.2 million) last year, EBRO will swing to profitability this year due to stronger sales among other factors, Ruiz said.
Impact of EU Tariffs and Market Share
Chinese carmakers have gained market share in Europe amid an aggressive price war by EV makers worldwide. Producing in Spain would allow Chery to avoid being subjected to EU tariffs of up to 35.3% on Chinese-made EVs.
Significance of Chery Investment for Spain
Local authorities have hailed the Chery investment as a positive example of closer commercial ties between Spain and China and a reflection of Spain's potential as Europe's second-biggest carmaker.
($1 = 0.8484 euros)
(Reporting by Joan FausEditing by Keith Weir)
