Pedro Calef: "Ours is a national project"

Pedro Calef is an engineer with a long career in the automotive sector. Now, as CEO of Ebro Motors, he is focused, on the one hand, on reindustrializing the former Nissan facilities in the Zona Franca, and on the other, on relaunching a legendary Spanish brand: Ebro. The factory is already up and running, although the so-called D-Hub needs to expand further with the arrival of the Chinese company Chery. And the first Ebros are already starting to hit the roads.

After the long and difficult process, has the reindustrialization of the former Nissan been a success?

— I think so, because the main objective was to reactivate the industry, redeploying workers to industrial activities. Although this is not yet finalized, as there are still some steps to be taken, it is being implemented. There are more than 800 workers. Industrial activity has recovered and will gradually increase. To be able to start quickly, we have only begun assembly, but we are already implementing the implementation to activate the entire factory, including welding, painting, and assembly.

How many cars are manufactured?

— We're currently producing approximately 50 vehicles per day. We're obviously becoming more flexible based on sales and inventory.

With two models and a third one coming out...

— Exactly. We started with the S700, which is one of the most popular models on the market. We continued with the S800, and now, soon, we'll start with the S400.

And within the context of reindustrialization, when will we see Omoda models coming out of here?

— We still maintain our initial forecast. Omoda, obviously, is owned by another company, even though they are also partners in the factory.

How many local suppliers do you have?

— We are beginning the process of localizing components. We currently have two local suppliers and are working with various companies in the sector to gradually localize more. As production increases, this becomes more necessary.

Would the goal be to end up manufacturing everything here?

— 100% is impossible. In fact, no one manufactures 100% of the production locally. But a significant portion can be produced, and quickly. Our goal is to localize a significant portion of the production.

Does it iron too?

— Ironing, obviously, economically is the one that requires the greatest investment, but also.

Painting also requires a lot of investment, doesn't it?

— Yes, but the investment in paint is for all models. The investment in bodywork is specific to each model. Therefore, in terms of sales, there must be more volume for the numbers to add up. In the end, it's all a game of evaluating the logistics team versus the manufacturing team for each component. Typically, the largest components are the ones that pay for themselves most quickly with localized production.

Do tariffs affect components?

— Now, we're not affected by the fact that we're local producers. Ultimately, regulations apply to everyone, and what we have to do is adapt to whatever regulations exist. And regulations keep changing. This past year, and especially in recent months, we've seen how regulations around the world can change in a matter of minutes. And we must adapt.

But now, do they pay taxes for parts and components from abroad?

— Yes, of course. You always pay. With the change in taxes on electric vehicles, if you manufacture them locally you have a huge advantage. Now we have plug-in hybrids, and one day we'll see 100% electric vehicles here. An electric motor is much more efficient than a combustion engine. We must work toward sustainability. Electric cars are clearly a solution because they produce no CO2 emissions.₂, especially in areas with the highest concentration of emissions, such as large cities, and also globally. As a society, we must move toward electric vehicles.

What is the goal for this year, the first whole year of manufacturing?

— Exceeding 20,000 units. Sales are progressing well. This April, despite Easter and the massive power outage, we managed to reach 879 registrations. We're already starting to approach the 1,000-unit mark. Now we'll add the S400, which is a high-production vehicle for local consumers. It's one of the most popular vehicle sizes on the market.

More urban, right?

— Yes, it's an urban SUV, but it's slightly smaller than the S700. Between the S700 and the S400, we cover 80% of the demand for urban SUVs.

How many dealerships do you have now?

— Now we have more than 50, already.

Is it price competitive relative to the competition?

— We're working hard across the entire price spectrum to be competitive, because Ebro's values of the past were to be able to trust the brand, to have a very robust and popular car, and to be affordable for people. And we want to maintain these values. Therefore, being within a price range accessible to everyone, obviously without being overly aggressive, but still affordable and within reach for people, is one of the goals.

In terms of results, when will profitability come?

— Last year, we started selling at the end of December. Obviously, there are losses, because we're still in an investment phase. At the factory, the forecast is already to reach approximately the break-even point this year, and to already be profitable next year. As at Ebro, the forecast is for a profit this year.

What sales figure should they reach?

— The forecast is to reach 30,000 vehicles produced by 2026. And the production estimate is for 2029, which would be 130,000 per year. This is with the factory at full capacity. There is progressive growth. Also, as we add more range, more technologies, and more versions, we will be able to cover a larger margin.

And in terms of investment, what is the forecast for this year?

— The investment is highly stratified over time. So, as profits are generated, they are also reinvested. Between now and 2026, we estimate around €100 million. Also depending on this reinvestment and if you continue to grow in sales, you can locate more components and have a larger supplier base. Here, we have the advantage of having an excellent, top-tier supplier base in Catalonia.

Does this play in favor?

— Yes, yes, of course, obviously. Also the fact that we're from here.

And I guess the staff too, right?

— Exactly. For us, bringing back the staff who already worked at this factory is a key factor, because it allows us to accelerate the project, as they are people who perfectly understand how everything works at this plant. This allows us not to start from scratch.

Did you ever see the reindustrialization process as being in danger?

— No. Every project has ups and downs, and you have to keep working to move forward. But the truth is, we haven't seen any danger at any point.

Does quoting help?

— The goal of contributing is to be able to share the project with the people. Ultimately, this is a very national project. And the ability to contribute makes everyone feel part of the project.

But in the end, what people, or the general public, are left with is that they make Chinese cars.

— The company is mostly local capital. We have a joint venture with a Chinese company. But the brand is from there, the company is from there, the factory is from there. And everything we're working on, we're working to generate added value here. This is important. If we look at the history of large manufacturers, they've often found collaborations with other companies that have helped consolidate them. I think this is what we're doing. It's also in our DNA, as a country, to collaborate with other cultures, to be open. We're Mediterranean, we're used to trading, speaking, and negotiating with everyone, and reaching agreements with different cultures.

When will export take place?

— We'll address it when the time is right. We're currently focused on the Spanish market.

Has the recovery of the Ebro gone well?

— Recovering a historic brand is very important. We've been losing the brands we had. It's also somewhat linked to the history of the factory. This factory, originally, in 1967, was the great Ebro factory. Ebro, too, when the brand was created, was a reindustrialization process. It was the post-war period, in 1954, Ford decided to stop manufacturing on Avenida Icària, and some families from here also got together and said, "We'll make this happen." And they created the Ebro brand. We also wanted to recover this spirit of reindustrialization, and that's why we thought recovering the brand was a value that is very much our own, it's very much ours; it's working hard to achieve a goal.