Overview
- SAIC, which was reported Friday to have chosen Spain over Hungary, is still negotiating the investment, plant capacity, and timetable before a final decision.
- Within Spain, Galicia has emerged as the frontrunner, with the region’s leaders meeting SAIC’s top executives and visiting the group’s battery complex in Zhengzhou on Saturday.
- SAIC plans to begin with CKD assembly, which means shipping MG cars in parts for local assembly, and then expand to more local suppliers and deeper manufacturing.
- Producing inside the EU would soften tariff pressures on MG models, with reports citing surcharges of roughly 35% to as high as 45% on some electric vehicles.
- The prospective plant would add to Spain’s growing EV footprint and could create jobs and orders for local parts makers, joining other Chinese-linked projects in Barcelona and Zaragoza.