Could China’s Chery Actually Make Cars in Canada?

Chery Automobiles, one of China's largest carmakers, is set to launch its first models in Canada in early 2027.

It’s been staffing up over the past few months and establishing agreements with dealers across the country; according to Farzad Salehi, the executive vice-president of its Canadian subsidiary, the company will have 10 to 12 retail stores spread across British Columbia, Ontario, and Quebec in the beginning, with the potential for more in the future.

Indeed, there’s plenty of work involved in getting a car brand off the ground, let alone two — Chery is bringing the same Omoda and Jaecoo marques it launched in Europe, the United Kingdom, and Australia to Canada — which also includes opening warehouses stocked with replacement parts, not to mention meeting regulatory requirements, all of which was underway as of this writing. But what about building vehicles here one day, too?

“The answer is very simple,” said Charlie Zhang, the company’s global vice-president. “Yes.”

Of course, that doesn’t mean there’s certainty behind the suggestion, but the company is actively considering its options, according to Zhang and other Chery executives. Whether that means establishing an all-new facility or taking over an existing one remains to be seen, but Chery has a history of both.

According to Zhang, Chery owns or operates about two dozen plants worldwide, either directly or through joint ventures and partnerships. But perhaps most interesting — at least in the context of what it could mean for Canada — are its operations in Spain, which Chery took over from Nissan after that automaker shuttered its facilities in 2021 following more than four decades of production.

It took a couple years after Chery’s 2024 announcement for production to get underway, with tariffs and other delays hampering the process. According to Zhang, total jobs created — both at the plant itself and through corporate and supporting roles — is roughly 1,400. But he said as the project ramps up, that will increase to somewhere between 2,000 and 3,000 jobs — close to the roughly 3,000 that were lost when Nissan closed operations five years ago.

Earlier this year, Chery and Nissan also announced that they were discussing potential plans for the latter to build Chery cars in the United Kingdom. While details were unclear as of this writing, such an arrangement could act as a potential roadmap for Chery to work with a company like Stellantis, which cancelled plans to build the next-generation Jeep Compass at its Brampton, Ont., plant that’s been idle since 2023.

Canadian armoured vehicle maker Roshel is said to be in talks to take over the facility, although no official announcement was made as of this writing.

Zhang also made it clear that any potential Chery plant in Canada wouldn’t be a simple satellite facility putting together so-called knock-down kits — effectively a collection of parts manufactured in China and shipped to Canada for final assembly. Instead, he said it would be a full-scale site complete with stamping, welding, painting, and assembly shops.

“What I believe is that we can create value, not only for the company but also for the country,” Zhang said.