MG confirms Spain as new European manufacturing base
MG has confirmed it is bringing car production back to Europe with plans for a new factory in Spain.
A €200 million investment will see the Sino-British brand launch a new “In Europe, For Europe” strategy, based at the new facility in Galicia.
MG says the factory will support 2,000 jobs in the local area and wider Europe as it looks to localise vehicle development and production.
MG closed its previous European manufacturing site at Longbridge, Birmingham in 2005 when China’s SAIC took over the failing MG Rover marque. Since then all of its cars, including its growing range of electric models, have been built in China.
Its managing director for the UK and Europe, William Wang, said the move would help MG make mobility more accessible to more people.
He commented: “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.”
The move will also help MG bypass current EU tariffs on cars imported from China.
The factory is due to begin operation in 2028 and, when at full capacity, will be able to build 120,000 cars per year. MG says it will house research and development, manufacturing and component supply facilities.
There’s no word on which models will be built at the Galicia factory, but MG says the site will bring its “world-leading” technologies to Europe and will be central to the development of next-generation battery technology. This could include its SolidCore, semi-solid-state battery, which is due to be fitted to the MG4 Urban. The site could also be tasked with producing the compact MG2, which is expected to launch within the next 18 months.
MG isn’t the only Chinese brand launching an in Europe, for Europe approach. BYD recently announced similar plans and will start production of the Dolphin G hybrid in Hungary later this year, and Stellantis is preparing to build cars for its Chinese partners Leapmotor and Dongfeng at its European plants.
