Tag Archives: European manufacturers

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Chery is considering building a plant in Italy

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

News

European manufacturers united against the Chinese

The European market is facing a large influx of Chinese manufacturers who are increasingly threatening the already weakened European car industry. After the cancellation of subsidies and the start of an investigation due to the privileged position of electric vehicles produced in China, European manufacturers are increasingly thinking about joining forces to oppose the Chinese.

The head of the Renault Group, Luca de Meo said at the Geneva International Auto Show that European manufacturers should cooperate more closely, especially when it comes to the affordability of electric cars. Talks between Renault Group and Volkswagen have already started.

Last month, Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

As a successful collaboration, de Meo gave the example of Peugeot, Citroen and Toyota that collaborated on the C1, P107 and Aygo models in the 2000s, but also the partnership of Alfa Romeo, Lancia, Fiat and Saab in the use of a common platform that is was the basis for four great sedans from the nineties.

“Speed is important against the Chinese. We are in an uncertain world. In the past, when we had cars with internal combustion engines, we could predict what was coming. Now, if you take four or five years to react, it is too late,” said de Meo.

Source: Automotive News Europe