“There are Chinese manufacturers in Europe that assemble cars with Chinese components and Chinese personnel. It happens in Spain and Hungary, and it is not right.” This is the statement of Stéphane SéjournéVice President of Prosperity and Industrial Strategy of the European Commission, in light of the way some Chinese manufacturers proceed to avoid tariffs on electric car that comes from China. Evidence that Europe is not happy with the “removable” kits from Chinese manufacturers.
There are companies that have a magnifying glass on their projects in Spain. CATL, with its 4.1 billion euro plant, is one of them. Now, his vice president has justified why its 2,000 employees will be Chinese.
Removable kits. The tariffs came into effect at the end of last year for those electric cars not only from Chinese manufacturers, but that are manufactured in China. The Tesla Gigafactory in Shanghai either Europeans would also be included. What Europe seeks with these tariffs is to persuade manufacturers to establish themselves in the EU and create value in the points where they install themselves.
Well: shortly after the tariffs began to be applied, the news broke that there were Chinese companies that were assembling their cars in Europe, yes, but they were not manufacturing them here. How did they do it? With removable kits. All work on key parts of the vehicle is done in China, where practically the entire car is assembled and then disassembled and the parts sent to the destination countries. They do it without wheels or steering wheel, but with all the critical parts, which are reassembled in factories in other countries.
Europe did not look favorably on this measure and already raised an eyebrow, but more recently, both Séjourné and other European manufacturers –Josep María Recasens, president of Renault Spain– they raised the hare. Recasens directly stated that Chinese manufacturers are making “four plates with wheels.”
Figueruelas Plant. There are plants that plan to change their way of acting in the short term, but what some point out is that this harms the area in which these companies are located. SEAT, for example, gives work to 15,000 people in Martorell, generating thousands of indirect jobs around it. And it is common: the manufacturer employs directly, but also generates work in the surrounding areas because logistics, auxiliary industries and local suppliers come into play.
Another key point in this controversy is the factory that CATL wants to build in Zaragoza. It will be the result of a joint venture between CATL and Stellantis, with a investment of 4.1 billion euros which will be used to create LFP batteries. It is scheduled to begin production in 2026 and is expected to generate 3,000 direct jobs. The problem is that 2,000 of those workers They will come directly from China.
CATL’s position. That would not meet the European Union’s desire to create wealth directly on the land on which they are established, but Meng Xiangfeng, vice president of CATL, has spoken out on the matter. It was during the COP30 climate summit held in Brazil where the manager was forceful: “it is not that we are not willing to hire local workers, it is that we need experienced technicians to build and perfect the production lines and start up the equipment.”
According to Meng, they are not seeking to replace local employment, but rather to start the plant in the best possible way by requiring specialized knowledge. “During this process, we will train local workers so that they can gradually take over the operation,” assured.
“You can’t come to Europe and build four plates with wheels and seats with little added value. We didn’t do it like that when we went to China, they shouldn’t do it when they come to Europe” – Josep María Recasens
Local wealth. It’s no small feat: CATL is one of the leading companies when it comes to powering new energy vehicles and was one of those on the table during the debacle of the European Northvolt. In addition to Figueruelas, the company has another plant on European soil, in Erfurt, Germany. It was CATL’s first outside of China and the executive assured that the procedure at the Spanish plant will be the same as that already applied on German soil and will be applied at the other European plant in Hungary. Like BYD.
and technology transfer. Once the plant is at full capacity, it will be possible to assess the extent to which the local wealth sought by the European Commission is created, but in addition to that issue, the issue of technology transfer is up in the air. Companies are jealous of their creations, and it is logical, but the president of Renault has a reason for Europe to force Chinese manufacturers to “teach us.”
When Western manufacturers entered China, the country forced them to partner with local companies to produce on its soil. As a result of that knowledge we have cars like the MG4 Electricbut also the new Renault Twingo made in Shanghai and Japanese Mazda 6e developed by Changan in China. And what is sought is for that knowledge to be shared.
As we say, we will see what happens, but Figuerelas will be a complicated case because those 2,000 employees who will come from China will practically double the current census of inhabitants of the municipality.
Images | Stellantis
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