Negotiations between the Italian government and China’s Dongfeng Motor Group about establishing an auto plant in Italy are progressing well, according to sources familiar with the matter. These discussions are part of Italy’s effort to attract another major automaker besides Stellantis, the country’s only significant automaker, known for brands like Fiat and Alfa Romeo. The Italian government might take a minority stake in the investment, aiming to create a hub for the entire European market.
The potential agreement could also include other key investors, such as Italian companies from the automotive components sector. Prime Minister Giorgia Meloni’s government aims to boost domestic auto production to 1.3 million vehicles annually, up from below 800,000 in 2023.
The government has been in talks with Stellantis about increasing its Italian annual output to one million units by the end of the decade, a target last reached in 2017. Italy has also been in discussions with other major automakers, including China’s Chery Auto, regarding potential investments.
Last week, Prime Minister Meloni visited China to strengthen cooperation with the world’s second-largest economy and reestablish trade ties following Italy’s exit from the Belt and Road Initiative. Dongfeng Motor Group, one of China’s leading automotive manufacturers, is a major player in both domestic and international markets.
Established in 1969, the company has diversified its portfolio to include a wide range of vehicles, from commercial trucks to passenger cars and new energy vehicles. Dongfeng has established partnerships with global automotive giants such as Nissan, Honda, and PSA Group, which have bolstered its technological capabilities and market reach.
The company is known for its focus on innovation, quality, and sustainability, aiming to drive the future of mobility with advanced automotive technologies and eco-friendly solutions. Dongfeng’s ambitious plans for expansion and collaboration, including potential ventures in Europe, reflect its strategic vision to become a global leader in the automotive industry.
