Pedro Calef (Ebro Motors): “We don’t have to fear the Chinese brand, we have to adapt.”
Ebro is completing more milestones. The brand launched its operations at the end of 2024 and is heading into its first full year with the goal of generating €333 million in revenue from the sale of 20,000 cars, its annual production. It has just unveiled its third model, the more compact S400 hybrid, at the Automobile Expo, and is in the midst of assembling the line that will increase the workload at its Zona Franca plant, located in the former Nissan plant.
Pedro Calef, CEO of Ebro Motors, argues that adapting and working well will allow for growth in a more competitive environment. Those who don't will fall by the wayside. In partnership with the Chinese company Chery, they provide the platform for their vehicles and hold minority stakes in two manufacturing and sales companies. This alliance is at the height of the Chinese automotive industry's growth.
Europe has gone from being a leader to suffering and falling behind. Why?
There's a global shift. Cars have gone from being 100% mechanical machines to having more electronics than mechanics. Coupled with the shift from combustion to electric or autonomous cars, this makes it harder for those with inertia to adapt. China is the leading electronics manufacturer, so the change has been good for them.
Can we say now that they dominate?
Rather than dominating, the wind has been in their favor. They have clearly opted for electric power from the start, and they have been right.
What do they have that isn't here?
They think differently, more agile, faster, not the way it's always been done. It's a mental shift. We're also undergoing a change in mentality and generation. We believe things can be done differently, and that it can be done here, even if some people say it can't. There's know-how , talent, and companies here. We don't just need to go to another country.
There's a lot of talk about electric, but hybrids are becoming increasingly important. What do people want?
Today, hybrid and plug-in hybrids predominate. They increase the sustainability of the system. That doesn't mean we shouldn't all be looking toward electric vehicles. As a society, we have to move toward electric vehicles because they're the most efficient, but there's a path. How we get there is determined by the market, the global landscape, the customer, the government... Our goal is to make sustainable cars that are within a reasonable and logical budget for the customer.
“The combustion engine makes sense and is in demand today; it's a necessary technology.”Why is it taking so long to get off the ground?
Every consumer has their own opinion. Price, range, charging network, psychological fear of electric cars, lack of habit... There are many factors that influence and make a person more hesitant or reluctant to take the plunge. What is clear is that it is the future no matter what; it will eventually be implemented because it is much more energy-efficient.
Is the fear founded?
Everyone has their own experience; some will be well-founded, others won't. Ultimately, it's the consumer who decides what car they want. And what we have to offer are solutions so they can have the one they want.
They have combustion-powered cars in that range. Does that still make sense?
Today, it's available, there's demand for it, and it's one of the best-selling technologies. It's necessary; there are uses where combustion still has no rival, especially in suburban areas. In urban areas, the electric vehicle is clearly king. Hybrids are gaining ground. The world must gradually move toward more sustainable vehicles.
The factory's capacity is 150,000 cars per year. Chery wants to increase it to 200,000, perhaps adding more models. Is that possible?
In the past, the factory has come close. Now, with the new lines, we'll be at 150,000 units. Obviously, it can be expanded; it needs to be studied because there's some flexibility, alternatives, for the production rate. But it's not infinitely flexible either.
Read also Chery aims to increase production in Barcelona and reach 1,200 employees by 2027. Luis Federico Florio
Will we need to hire more people?
There's an established plan, agreed upon with the unions, and we're implementing it. Of Nissan's 1,200-person workforce, we've already hired 800.
The business is concentrated in Spain. Do you plan to export?
We're focused on developing the market here. We have 50 dealerships and we want to reach 80 by the end of the year. The rest will come when it's time, not now. Our plan is based in Spain, and we have to work on it, although we're thinking about other things in parallel. The first objective was to start the factory, consolidate and consolidate growth. We do this month by month.
Isn't there a risk of Spain becoming saturated with Chinese brands?
This isn't about flags, it's about adaptability and added value. If things are done right, it doesn't matter whether the car has one flag or another. We provide a brand with historical values and a locally manufactured product; that's equally important.
What does Chery contribute to the formula?
It's a world-class manufacturer. It brings knowledge and a significant technological component. We see this today when you get into a car: you have more screens, interactions with the vehicle that work differently...
Do they push hard on a daily basis?
We must remember that we have a team made up of local people who work hard and achieve everything with effort. We're from here, and we want to continue that way. That said, there's a good dynamic with them working together; we talk daily. Technology facilitates a fluid relationship. On a technical level, it's continuous and daily. It's necessary. But we have a business plan, which we focus on, because it's ours, and it's the one we must take care of and work on.
Calef, at the Ebro facilities in the Zona Franca
Pau Venteo / ShootingShouldn't we fear a paradigm shift with the Chinese push?
There's no need to fear it; you have to adapt. Change always has its upside and its downside. You have to be alert, work hard, and spot opportunities. Any change brings them, and the ability to adapt allows you to survive. Normally, those who survive do so successfully. The world has changed, it's shifted; in the past, Japanese and Korean companies arrived, and now Chinese companies are arriving. What you always have to do is adapt. There were brands before the Japanese arrived that still exist today, and others don't. The same thing happened with the Koreans. The same thing will happen again with the Chinese.
“We are focused on developing the market here, although we are thinking about more things.”Chery is calling for 1,000 monthly sales to be achieved as soon as possible.
We hope to achieve this soon; in April, we had 880. Our goal is 20,000 units by 2025; we're on the right track. We're working to expand the offering for consumers; that's the goal.
A dedicated electric vehicle is on the horizon. When will it be released? Will it be industrial or more urban?
We have different plans. We're taking it step by step. We've just started with plug-in hybrids. Now we have the S400, and we'll continue to offer more options.
2024, with the start-up of the factory and the associated costs, closed with losses of 23.9 million.
It was expected; we started selling in December and are still in the investment phase. The goal is to be profitable as a manufacturer this year, and for the factory to be profitable by 2026.
Ebro EV Motors, the parent company, has lost almost 30% of its stock price this year. Is this a concern?
A turbulent stock market environment is affecting us. This first quarter has been a bit more negative for the stock market due to other news. We have to work to be attractive to investors, meet our business plan and forecasts. With that and better visibility, we're confident of an improvement.
The s400, another step up in the rangeEbro presented its new model, the s400, a non-plug-in hybrid with an ECO label on Friday at the Automobile fair. This vehicle expands and complements its range. "It's an urban-designed vehicle with very good performance. Our goal is to make sustainable cars that are within a reasonable and logical budget for the consumer," he says.
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