Following Italian Prime Minister Giorgia Meloni’s visit to China at the end of July 2024, the Italian government’s negotiation with China’s state-owned Dongfeng Motor Group to build a factory in Italy has entered into the final stages, according to Reuters.
The investment would significantly strengthen the Italian car industry. Insiders revealed the Rome government will hold a minority shareholding in the factory, and that Italian component suppliers would also be investors.
The move would be a significant opportunity for the Chinese, who could bypass the high tariffs on Chinese cars in the EU through local production.
Meloni recently announced that the government’s goal is to increase Italian car production from 800,000 to over 1.3 million units per year.
The proposed Dongfeng factory could be a significant factor in achieving this goal and is said to be aiming at making 100,000 hybrid cars a year in Italy, for both the local market and the European market as a whole. Dongfeng has been selling its premium Voyah-branded electric vehicles in several European markets including Italy, Denmark, and Norway since December, 2022.
The Chinese investment is one fruitful follow-up of Prime Minister Meloni’s visit to China. Meloni also signed a three-year action plan with China’s Premier Li Qiang during her visit, which includes six agreements in areas such as electric vehicles, renewable energy, industry, food safety, and education. She reiterated her call for more Chinese investment in Italy.
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Source: The China Academy, August 9, 2024.
https://thechinaacademy.org/italy-and-chinese-automaker…/