The Chinese car giant in Italy? The Italian Government uses a strong fist, conditions – www.fuoristrada.it

An attractive opportunity is emerging but Italy has decided to carefully assess the risks and opportunities. The Government sets conditions

Italy is playing an important game in the automotive world. For some time, the Government has been trying to attract a large car manufacturer to revive the national industry. After several attempts by various Chinese manufacturers, it seems that the focus has been Dongfenga Chinese giant in the region.

While they are trying to bring part of the production of the mentioned brand to our region (or others that may eventually arrive), the Italian executive is not willing to give carte blanche to the new representative. On the contrary, it is precise and ambitious setting to ensure that a good development opportunity is not lost or even unproductive.

The Italian government shows that they have clear ideas about what they want to get from this possible agreement with Dongfeng. The demands are tough and are aimed at protecting national interests. The first concerns her local suppliers. In fact, we demand that at least 45% of the components of each car are produced in Italy. This movement aims to support local business and create jobs in the country.

The Italian government’s requests to the potential new car manufacturer

The second face of intervention relates to the data security: The government wants car multimedia systems to be supplied by Italian companies. The aim is to ensure that customer data is managed in Italy, avoiding potential security problems. Finally, theaccess to incentives. Minister Urso announced that incentives for car purchases will be reviewed to favor vehicles with more Italian and European parts. This move would push the foreign manufacturer to use local suppliers to benefit from these advantages.

These requests show how Italy is trying to get the most out of this agreement. The final goal is ambitious: bringing Italian vehicle production back to 1 million units by 2030. Currently, we are very short of this goal and the arrival of Dongfeng could be the effort to reach this goal.

For its part, Dongfeng has good reasons to consider Italy. The company is looking for a “base” in Europe, also for avoid the obligations of the European Union has imported Chinese electric cars. The road to an agreement seems to be progressing well but details are still to be defined. The Italian government shows that they know how to negotiate firmly, trying to get the most benefit for the country.

It remains to be seen how Dongfeng (or any other manufacturer) will respond to these demands. On the other hand, the conditions imposed by Italy could require significant investments and changes in the company’s production processes.