SAIC will build a new factory in Europe. The company will announce the country where the factory will be built by the end of September.
SAIC is negotiating with Spain’s Ministry of Industry to build a factory in the country to produce MG cars. Conformable CarNewsChinareports claim that SAIC Motors will make a decision by September 30, 2024. Other countries targeted include Hungary and the Czech Republic, which have lower labor costs.
SAIC intends to make a decision soon so that construction of the plant can begin. The company wants the first vehicles to be produced in the fourth quarter of 2027.
SAIC wants to build an electric car factory in Europe
The decision is a direct result of the European Commission’s investigation into the Chinese state’s subsidies for electric vehicles. The survey results hit SAIC with the highest temporary tariff, which amounts to 37.6%.
Although SAIC cooperated with the investigation, it received the highest tariff, which is equal to that of companies that did not cooperate with the investigation. While some argue that this is because SAIC has the largest import volume into the EU, the more plausible reality is that SAIC did not provide basic information, including battery data, in accordance with EU requirements.
Last year, the MG 4 was the sixth best-selling battery electric model in the EU, with 72,421 units sold in 2023. This model will almost certainly be produced at the new European plant, given its popularity with customers Europeans.
The EU tariffs were announced in June and came into force on 4 July. There was a slight drop in the level of tariffs from the threshold originally announced in June, with SAIC charges falling from 38.1% to 37.6%. The tariffs introduced earlier this month are meant to be a temporary measure until the permanent tariffs are introduced in November this year.
Source: www.promotor.ro
