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SAIC’s MG Chooses Galicia for First Continental‑Europe Car Complex

It aims to sidestep high EU EV import duties by localizing new‑energy vehicle production, creating local jobs, and prompting scrutiny over manufacturing scope and port influence.

Overview

  • The Xunta of Galicia announced on Monday that SAIC/MG has selected sites in Ferrolterra (including the Port of Ferrol) and As Pontes for a continental‑Europe industrial and logistics complex with construction slated to start in 2027 and production targeted for late 2028.
  • Company and regional statements say the project entails about €200 million in investment, capacity for up to 120,000 vehicles a year, and roughly 2,000 direct and indirect jobs, and that the site will include R&D, manufacturing, component supply and logistics.
  • Officials and commentators warn the final scope of local production remains unclear and may be limited to CKD assembly, a process that ships partly built kits for on‑site assembly to reduce import duties.
  • Local editorials and officials have flagged risks from deep logistics ties to a single foreign operator, citing concerns over concentrated influence on the Port of Ferrol and the need for close regional, national and EU oversight.
  • The move fits a wider trend of Chinese auto investment in Spain driven by high EU EV tariffs (cited around 45.3%), and it could strengthen Galicia’s supplier base and R&D links while raising questions about trade rules and industrial control.