Italian Industry Minister Says Chinese Automakers Rule Out Italy Due to Factory Shortage

POLICY WIRE — Rome, Italy — Chinese automotive manufacturers seeking to grow their production footprint within Europe have officially dismissed Italy as a viable option, citing an acute scarcity of appropriate manufacturing facilities. Italian Industry Minister Adolfo Urso delivered the update on Wednesday, explaining that overseas producers are actively searching for operational sites inside the European Union.

The push by Chinese brands to build local assembly lines comes as Brussels formulates upcoming regulations that will establish minimum local content thresholds for electric vehicles sold throughout the bloc. However, Chinese automakers have been unable to secure ready-to-use facilities for purchase across the Italian peninsula.

Urso detailed during a parliamentary Question Time session that various representatives from the Chinese automotive sector, including BYD Europe special adviser Alfredo Altavilla, conducted site inspections across Italy and engaged in multiple discussions with him without locating appropriate venues. Stellantis, serving as the nation’s sole major domestic automaker, maintains vehicle manufacturing operations alongside Chinese partners but has neither shut down any domestic facilities nor made them available to outside manufacturers.

Meanwhile, the Italian industry ministry announced on Tuesday that ITB Auto is slated to acquire an inactive auto components plant located in northern Italy. Backed by an investment of approximately 100 million euros, translating to $117.3 million, the project aims to manufacture Chinese electric minicars.

The ministry disclosed the acquisition following a series of crisis discussions held in Rome concerning the trajectory of the Grugliasco facility situated near Turin, which is currently held by U.S. automotive suppliers.

Reporting by Policy-Wire (PW)