Dongfeng eyes Italy for a major car production facility
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 looks like they will build a factory in Italy.
As "Reuters" reports, the Chinese company Dongfeng is in talks with the Italian government about potentially building a factory where the company's cars would be produced. The investment would significantly strengthen the Italian industry.
It would also be a big opportunity for the Chinese, who could bypass the high tariffs on Chinese cars in 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's goal is to increase Italian car production from 800,000 to over 1.3 million units per year. The Dongfeng factory could be a significant factor in achieving this goal.
