Chery is in discussion with Italian government about building a plant, says report
https://www.carscoops.com/author/chris-chilton-cc/
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by Chris Chilton
March 13, 2024 at 12:33
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The Chinese auto industry has some aggressive expansion plans that rely on more than simply ramping up exports from the mother country. What brands like Chery need are production bases in their destination markets, including Europe, and that’s surely worrying news for established Western automakers like Fiat.
Chery is reportedly in talks with the Italian government about the Chinese automaker building a car plant in the country. While Italy’s lawmakers are obviously keen to look after the interests of its local Stellantis-owned brands like Fiat and Alfa Romeo, it’s also intent on boosting the nation’s car-building output from less than 800,000 in 2023 to around 1.3 million units.
Reuters says the government has already held discussions with Stellantis about boosting output to a nice, round million units – something it hasn’t achieved since 2017 – by the end of this decade, but Italy needs to add another carmaker to its roster to build 300,000 more vehicles each year.
Related: China’s Chery Wants To Build EVs In The UK And Europe
Industry Minister Adolpho Urso has already gone on record as saying Italy has previously held talks with Tesla and three Chinese automakers about working in the country, which sources identified as including Great Wall and BYD. But BYD has already confirmed plans to build a factory in Hungary, and it’s now believed that Chery has emerged as the most likely brand to sign a deal to create an Italian plant.
Although low costs can make Eastern Europe appear tempting to Chinese automakers, Italy’s long car-building history should mean Chery would have access to a ready supply of workers with relevant experience. And Reuters‘ sources suggested that building a base in Italy or Spain, where EV sales are still relatively low, would be a good fit with Chery’s plan to offer a mix of car types that include combustion-engined vehicles and hybrids as well as fully electric cars. The automaker has also been linked with plans to build a factory in the UK.
