Geely will produce cars in Europe, although "where" is still to be defined. Two years ago the Chinese giant approached Poland by striking a deal, but the new Polish government will have to decide by the summer whether or not to support the previous administration's plan and give the green light to build the Geely electric vehicle plant.

The support would come from EU funds, a senior official close to the Polish government told Reuters, but if Poland does not go ahead, the Chinese group could move to other European countries. One of the most likely would be Spain, where China's Chery Auto has struck a deal.

Madrid will open two tenders this year for companies interested in producing cars, requesting a total of €1.7 billion in loans and grants from EU pandemic relief funds.

The Izera project

Poland is finalising a revised spending plan for Brussels, as it has just over two years left to spend almost €60 billion in loans and grants received from the EU. ElectroMobility Poland (EMP), we recall, has signed a licence agreement with Geely to use its SEA (Sustainable Experience Architecture) platform for the Izera brand.

'Building the plant with Geely, which was chosen as a partner for the project in 2022, was not the ideal solution,' Jan Szyszko, deputy minister of development funds and regional policy, said in an interview in Automotive News. But the alternative of supporting already operational projects, including the construction of buses, also had limitations'.

A political issue

Given the money already spent on the project, it should be continued, but it is up to the experts to recommend the formula to the government 'within a few weeks', the Minister of State Assets, Borys Budka, told Polsat News television.