SAIC Motor selects Galicia, Spain, for first European MG factory

SAIC Motor, the parent company of MG, has selected Galicia, Spain, as the site for its first European manufacturing plant. The project involves an investment of approximately 200 million euros, with production expected to begin in 2028 and a planned annual capacity of 120,000 vehicles.

While the investment offers economic benefits and a way to bypass tariffs on Chinese vehicles, it has raised security concerns within Spain. Intelligence reports suggest a risk of espionage due to the plant's proximity to Ferrol, a critical port for the Spanish Navy and a maintenance hub for NATO F-100 frigates. Officials expressed concerns that the facility could be used to gather sensitive information regarding naval movements.

Spanish Defense Minister Margarita Robles has stated that the ministry supports the project and has been involved in negotiations with SAIC for months. The final decision rests with the Strategic Investment Committee, which may impose specific security conditions on the project.