MG - the famed sports car brand which has been owned by China's Shanghai Automotive Industrial Corporation (SAIC) since 2005 - has announced what we've long known was coming: a factory in Europe which will allow it to sidestep the EU's extra tariffs on Chinese-made electric cars.
Where will the new factory be?
In spite of the huge number of European brands that seem perfectly happy to flog existing factory space to Chinese car makers, MG has opted for a clean-sheet approach and will build an entirely new factory in the Galicia region of Spain. For those of you wondering, that's the north-west corner of Spain, the bit that sticks out over the top of Portugal. It won't be the only carmaker in that part of the world - Stellantis Group has a factory in the town of Vigo, where it builds vans.
How much is MG investing in the new factory?
MG will pump €200 million into its Spanish factory, which is expected to generate at least 2,000 jobs in the region. The company said that this is part of its "long-term commitment to the European market and the acceleration of its 'In Europe, For Europe' strategy.”
"From technological innovation to the localisation of manufacturing and R&D across Europe, supported by a truly global product line-up, MG continues to push the boundaries of what is possible-making advanced technology and sustainable mobility accessible to more people than ever before,” said William Wang, Managing Director, MG UK and Europe. "Through our 'In Europe, For Europe' strategy, we are not simply responding to the future of mobility-we are helping define it. By investing in local capabilities, strengthening our European footprint and fostering a more competitive automotive ecosystem, we are accelerating Europe's journey towards a cleaner, smarter and more sustainable mobility future.”
Which cars will MG build there?
That remains to be seen, although it would be logical to assume that the factory will specialise in electric cars, as hybrids and plug-in hybrids don't attract the same level of import tariffs. MG has said that this won't just be an assembly plant, but that it will "integrate vehicle research and development, advanced manufacturing, core component supply, and intelligent logistics operations, forming a fully connected, end-to-end industrial ecosystem.”
There has also been mention of semi-solid-state batteries, a form of battery chemistry that is theoretically more robust and faster-charging, and which MG has previously said it intends to bring to market imminently. No current MG model uses those batteries, so it could be that Galicia is being lined up for an all-new, high-tech model.
MG, since it came back into the European car market in 2011, has grown fast. In fact, MG has become one of Europe's fastest-growing automotive brands, supported by a network of more than 1,300 dealer partners across 34 markets, and it recently marked the delivery of its 100-millionth global customer vehicle. In those 15 years, MG has sold one million cars to European customers, and passed the 300,000 sales mark in Europe last year.
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