Italy's government is revving up its efforts to become a bigger player in car manufacturing. The country is in talks with both domestic giant Stellantis and China's Chery Auto to significantly increase national car production.
Italy Aims for Production Jump
Italy has its sights set on an ambitious goal: to nearly double its annual car production from 800,000 vehicles in 2023 to 1.3 million. Negotiations are already underway with Stellantis, the automotive group resulting from the merger of Fiat Chrysler and PSA Peugeot Citroen. The aim is for Stellantis to ramp up production to a million units annually by 2030.
Chery: A New Player in Europe?
If a deal is reached, Chery Auto would be a trailblazer. The Chinese automaker would become one of the first from its country to establish a manufacturing presence in Europe. This would undoubtedly intensify competition for established Italian carmakers, particularly in the fast-growing electric vehicle (EV) market.
Italy Casts a Wide Net
Talks with Chery aren't the only irons Italy has in the fire. The country has also held discussions with Tesla and three other unnamed Chinese car manufacturers. This multi-pronged approach reflects Italy's desire to secure a strong position in the evolving automotive landscape.
Chery Bullish on European Sales
Chery is confident that strong European sales will justify a local assembly plant. The company's Managing Director for Europe, Jochen Tueting, has publicly stated this belief.
Location, Location, Location
Chery is weighing its options when it comes to a potential production facility. Refurbishing an existing Italian plant or building a new one are both on the table. However, Chery is also exploring other locations in Europe, including a former Nissan plant in Barcelona, Spain.
Secrecy and Challenges
The discussions are shrouded in secrecy, likely due to factors like price wars and the ongoing tensions between China and the European Union. Nevertheless, Chery's product strategy – offering a mix of internal combustion engine, hybrid, and fully electric vehicles – appears to align well with Italy's or Spain's manufacturing capabilities.
The outcome of these talks will be closely watched by the global automotive industry. If successful, they could significantly reshape car production in Europe and beyond.
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