SAIC's MG Plant Plans Revive Ferrol Auto Hub After Arcfox Failure

In early 2024, Chinese brand Arcfox attempted to import its electric vehicles to Europe via the port of Ferrol, Spain, planning an initial investment of €5 million and up to 60 jobs. The project was halted when the European Union imposed tariffs of over 35% on Chinese EVs, leading to the deregistration of Arcfox Automotive SL.

SAIC Motor, the parent of the MG brand, is now moving forward with a far larger plan. The company announced a €200 million investment for two facilities in Ferrol and As Pontes, with production slated to begin by 2028. The plant is expected to assemble around 150,000 vehicles each year—the same volume MG sold in Europe between January and May 2024—and generate roughly 2,000 direct and indirect jobs. SAIC reported global sales of 1.65 million vehicles in the same period, with MG accounting for 150,000 units in Europe, reflecting a 20% year‑on‑year increase.