Chery enlists Groupe Ricco to sell ‘ICE’ Omoda in Wallonia

Chinese Chery Automotive is expanding its dealerships for its Omoda and Jaecoo brands in Belgium to Wallonia by signing up Stellantis dealer Groupe Ricco, which has footholds in Arlon, Libramont, Marche, and Rochefort. However, Chery has swallowed its EV ambitions for the EU for now, as it will launch the ICE version of the Omoda 5 instead.

It will be Belgium’s seventh official Chery dealer, alongside partners such as Imacar, Garage Serneels, Pagnotta, L’Universelle, Garage Van Brempt, and D&O Mobility Group. Two weeks ago, Chery enlisted another Stellantis dealer group in Flanders, Imacar, with outlets in Sint-Niklaas, Bornem, and Wetteren and involved in electric cars as a Move2Green EV rental partner.

No electric ambitions

Chery initially announced that it would introduce the Omoda 5 EV and the Jaecoo 7 SUV in Belgium at the revived Brussels Motor Show in January 2025 and start deliveries in the spring. But now, it says it will launch the version with the 1.6-liter combustion engine called Omoda 5 ICE instead.

This one has no electric ambitions but delivers 185 horsepower with a turbocharged gasoline engine and a seven-year, dual-clutch automatic transmission. It looks like the EU imposed tariffs on Chinese EVs, which range between 17% and 21.3% for Chery, plus the already existing 10%, are weighing too heavy to swallow.

A spokesman assures that the EV will also be shown at the BMS and offered in Belgium, with the Omoda 5 EV in the showrooms from mid-January on, but no further details about pricing or a time frame are given. That’s reserved for the official press conference at BMS on January 9th.

Gone are the plans for the fully electric Omoda 5 to lead the offensive in Belgium. We could already take the Omoda 5 EV, a fully electric compact SUV, on the road for a first test. This one was aimed at families and plays in the league of the Hyundai Kona EV, BYD Atto 3, or the MG ZS, the first affordable Chinese EV to hit Belgian roads and introduced in Europe back in 2019.

Factories in Spain and Turkey

Chery plans to build the Omoda 5 EV in Spain to avoid EU tariffs. It bought the former Nissan factory in Spain to produce the car locally with a Spanish partner for the EU market. Around 1,400 of them have been built in Barcelona, which could be 150,000 by 2029. Until the tariffs became active, the Omoda 5 EV was sold in Spain for €37,900, a price Chery couldn’t afford.

Spanish specialized media, like Tribuna de la Automoción, reported that Chery delayed those plans to await the outcome of ongoing talks with the EU on tariffs for Chinese EVs. Chery and Spain are also looking to Turkey to set up a ‘European’ alternative.

Turkish media quoted a senior official saying, “Türkiye is nearing completion in negotiations with Chinese automaker Chery for a manufacturing facility within the country.” The EU Commission confirmed that it is aware of this, as stated in a written answer to a question from Carlo Fidanza, Italian MEP for the European Conservatives and Reformists Group.

Fidanza stated, “Turkey has recently attracted significant investments from Chinese car manufacturers such as BYD and Chery, taking advantage of the customs agreement with the EU providing for duty-free movement of goods into the EU.”

“This means Chinese vehicles can enter the European market without additional tariffs. How will the Commission ensure the customs union agreement with Turkey is not misused to circumvent import duties from China?”

EU remains ‘vigilant’

In the answer given at the end of November by Executive Vice-President Valdis Dombrovskis, the European Commission says it is aware of several initiatives and overseas investment plans regarding Chinese automotive producers. These plans have been available in the news over the last few months.

“At this stage, it is too early to assess whether these investments could impact the competitiveness of the European car industry. It would be premature to speculate on possible measures.”

“The Commission remains vigilant and will closely monitor investments of Chinese car manufacturers in third countries. The Commission will take appropriate action where necessary to preserve the principles of fair trade, to maintain a level playing field, and to protect the industry against unfair competition.”

According to the Turkish site dailysabah.com, “Chery has swiftly risen to become one of Türkiye’s top-selling car brands since reentering the market last year. Reports have suggested it plans to establish a manufacturing base in the Black Sea province of Samsun.” The exact models to be built in Turkey and the size of the factory have not been disclosed yet.