European manufacturers are still struggling with Chinese car manufacturers, who are trying to conquer the European market in different ways, so the European Union introduced additional tariffs on vehicles from China. However, Chinese companies seem to have a “plan B”, building plants in Europe. After the Chinese car manufacturer BYD announced that it is building its plant in Hungary, another Chinese company (Chery) could follow the same path, but in Italy.
Currently, Stellantis is the only major car manufacturer in Italy and the new Italian government is trying to increase production by introducing another manufacturer, the Chinese company Chery. According to official information, the government is considering offering the Chinese manufacturer to build a plant in Italy, in order to increase the annual production of cars to over one million. Italy currently produces 800,000 cars a year.
Building a plant in Europe would be a good strategic decision that would allow Chinese companies to avoid obstacles when it comes to additional taxes or potential quotas that the EU could impose on vehicles imported from China. Obviously, Italy is the ideal place for that. According to Italian Industry Minister Adolfo Urso, over the past year the government has been talking to several manufacturers, including Tesla. The government’s goal is to increase production by an additional 300,000 cars per year.
Chery is the fifth largest Chinese car manufacturer with 1,881,316 vehicles sold in 2023. In the next two years, the company will launch three new SUV models with different power options, primarily intended for European customers. “Expectations are high and sales in Europe should be high enough to support the construction of the plant,” said Chery Europe Managing Director Jochen Tueting.
Source: Reuters
