Chery, I was able to start a factory in Italy?!

Chery and Rome in discussions for a new factory

According to what two close sources told Reuters, the Italian government is in talks with Chery with a view to increasing domestic car production.

If we are to believe the contents of the declarations, it is not so much Chery that could be the driving force behind the issue as the Italian government.

Roma would certainly like to attract another major carmaker to the country, including Stellantis.

Goal: to increase the production of national cars

Rome wants to increase Italy’s national production to 1.3 million cars a year, compared to less than 800,000 in 2023.

The government is already in talks with Stellantis – the country’s only established major carmaker – to increase the group’s production to one million units annually by the end of this decade, a total it had last reached in 2017.

Ending the monopoly of Stellantis

The Italian government is looking for a second carmaker in a bid to end Stellantis’ monopoly. “Only in Italy do we have this error of having one car manufacturer,” announced Adolfo Urso, Italy’s Trade Minister, last February.

“To defend the Italian industry, we need the production of at least one million cars and around 300,000 light utility vehicles” every year, he explained.

Negotiations with BYD

Last February, various sources also indicated that Italy will be in discussions with Chinese manufacturers, including BYD, to “give” them access to its automotive sector, subject to certain conditions.

The announcement is somewhat “disturbing” as the European Union tries to find a solution to the arrival of the Chinese car competition. Brussels and various member states concerned with competition from Chinese electric cars, with their attractive prices. Suspecting Beijing of unfair behavior, the EU launched an investigation into subsidies given to Chinese producers.

Italy looks soft on Tesla and Chinese manufacturers

Adolfo Urso also said that Italy held talks with Tesla and three Chinese automakers, whose names have not been made public, but whose representatives visited Italy last year to evaluate possible investment opportunities.

Now, one of the two sources has indicated that Chery is currently the option that Roma is “more bankable”.

While a spokesman for Italy’s industry ministry declined to comment, Chery Europe CEO Jochen Tueting told Reuters the carmaker is expected to be high enough to justify the domestic plant project.

“We are exploring different possibilities across Europe, looking for a possible local production setup for the future,” Tueting told the minutes openly.

Our opinion, for leblogauto.com

If the talks are successful, Chery will be among the first Chinese automakers to have a manufacturing presence in Europe, increasing competition with traditional domestic manufacturers, especially in the electric vehicle segment. A strategic opening on the European market for Chery… but the entry of wolves into the fold?

Sources: Reuters, AFP