In the last half-century, the Iberian Peninsula has held an interesting record: being the second-largest European car producer after Germany despite not having, unlike Berlin, major native car brands (excluding Seat, born Italian and ended up in the Vw portfolio). This record, apparently also thanks to strategic choices in using Pnrr funds to attract foreign manufacturers, will continue to be held even with the invasion of cars made in China on our roads.
THE CAR MADE IN CHINA IS MADE IN SPAIN
Stellantis, the main producer on the Iberian Peninsula with its factories in Vigo, Villaverde, and Figueruelas near Madrid and Zaragoza, will manufacture vehicles under the (Chinese) Leapmotor brand. As is known, under the former CEO, Carlos Tavares, the Italian-French Group acquired about a 21% stake in the Dragon’s startup, and the two companies launched Leapmotor International, a joint venture controlled by the Western manufacturer through which it secured exclusive rights for the sale and production of cars made in China outside of China.
STELLANTIS ACCELERATES WITH LEAPMOTOR IN TWO HUBS
With the new CEO, Antonio Filosa, the partnership has undergone a review aimed at expanding it. In Figueruelas, near Zaragoza, where the Peugeot 208 and Lancia Ypsilon are currently produced, the Leapmotor B10 should also arrive during this year.
The model was initially destined for Poland, but it seems Beijing imposed a veto to punish Warsaw for the affront of voting yes to the Commission’s proposal to target cars made in China. Thus, Spain has become the core of European exports where, apparently, the addition of a new assembly line for an electric Opel SUV, also developed closely with Chinese engineers to keep costs low as only Asians know how to do, is being studied.
THE VILLAVERDE FACTORY TO LEAPMOTOR’S CHINESE?
The expansion of the partnership, reports Quattroruote, also involves the Villaverde plant in Madrid, which could be assigned “a new Leapmotor model from the first half of 2028.” This is an important reassurance for the plant, which had long awaited to know what would replace the Citroën C4 once it went out of production. The parties, adds the specialized publication, are also evaluating the “potential transfer” of the site’s ownership to the Spanish subsidiary of Leapmotor International.
SAIC TARGETS GALICIA?
The Spanish saga of Saic Motor, owner of the British brand Mg, continues, which somewhat surprisingly (but not too much, considering Brexit) did not choose to settle its European hub in Great Britain but rather targeted continental Europe.
The choice has long fallen on Spain, strategically “close” to England, and according to local press rumors, the Chinese have identified the Northwest area, specifically a site in Ferrol that has already had talks aimed at receiving the important Chinese investment, with the president of the Galician Government, Alfonso Rueda, on a mission in China, precisely at Saic factories where he met the Asian Group’s president Xiaoqiu Wang. In the initial phase, production should take place through assembly kits coming from China; for this reason, Saic is very attracted by the nearby Spanish commercial port.
FORD LEAVES, GEELY ARRIVES
Other press rumors finally speak of a curious imminent changeover (although none of the parties involved confirm): according to Autonews citing La Tribuna de Automocion, Ford and Geely are close to an agreement on cohabitation in the plant that the Blue Oval has in Valencia. It is a recently modernized plant but now largely underutilized, no longer producing the Kuga.
The vehicle Geely intends to produce in Valencia would be closely related to the Galaxy 2, a compact SUV that was the best-selling model in China in 2025. If the operation goes through, it could bring the Valencia hub, in crisis since the pandemic, back to the productive heights of 2019, when it exceeded 300,000 units annually.
According to Spanish press reports, cars made in China would be assembled in Body 3, the most modern area of the site, originally designed for the midsize Cd4 platform on which the Ford Mondeo, Galaxy, and S-Max were based, all models now out of production. And that the Blue Oval no longer wanted to replace, joining the increasingly long list of manufacturers gradually reducing their presence in the Old Continent. And the Chinese brands thank them.
