Dongfeng suspends plans to produce cars in Italy

On 30 October, Europe will have to give its final verdict on the tariffs imposed on Chinese electric cars. According to Bloomberg's well-informed (but anonymous) sources, talks between Beijing and Brussels are going on to find an alternative solution. Meanwhile, as carmakers were preparing for the duties with record car production and an unprecedented delivery to European customs, comes news that the government is reportedly urging Chinese carmakers to slow down their expansion into the Old Continent.

Already in the summer, the Chinese Ministry of Commerce had urged manufacturers to protect their know-how, especially in terms of technology, referring to increased production abroad (particularly in South-East Asia, South America and the Middle East). Now Automotive News writes that Dongfeng Motor Group Co. (state-owned) has reportedly frozen plans to produce cars in Italy in response to the warnings (sources again remained anonymous).

A directive, not an obligation

According to Corriere della Sera's report, negotiations between the Italian government and Dongfeng to open a car factory in Italy were going ahead with a number of special conditions.

Today's news, however, is an abrupt halt and, despite the fact that the Chinese directive is not an obligation for car manufacturers, it is obviously a huge hindrance to going ahead, despite the long work of Italian politicians carried out for months (recall, for example, the trip to China made in July by the Minister for Industry, Adolfo Urso).

Dongfeng 007

The vote will be decisive

While waiting for something to be unblocked, Chongqing Changan Automobile Co., as Automotive News reports, has also frozen the event for its European launch that was to take place in Milan this week. However, the commitment to enter the European market remains confirmed.

Much of the future of the entire automotive industry will depend on Europe's final vote on tariffs at the end of October. All eyes, therefore, will be on Brussels.

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Read also:

Omoda & Jaecco to open a research and development centre in Italy

How China has become a problem for Western carmakers

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