Chinese automaker Dongfeng eyes Italy for new production factory
Chinese corporations are becoming increasingly bold in Europe, not only in terms of sales but also in production. Dongfeng is the next player that wants to manufacture its cars on the Old Continent. It appears they are planning to build a factory in Italy.
As Reuters reports, the Chinese company Dongfeng is discussing with the Italian government the possibility of building a factory where the company’s cars would be produced. The investment would significantly strengthen the Italian industry.
It would also be a significant opportunity for the Chinese to bypass the high tariffs on Chinese cars within the EU through local production. According to anonymous sources cited by Reuters, the Italian government would be a minority shareholder in the factory. Italian companies, including component suppliers, would also be investors.
Prime Minister Giorgia Meloni recently announced that the government aims to increase Italian car production from 800,000 to over 1,300,000 units annually. The Dongfeng factory could be a significant factor in achieving this goal.
