China's Dongfeng to assess Europe sales prospects before plant decision

Reuters
2024-09-13

TURIN, Sept 12 (Reuters) - China's Dongfeng Motor Group

needs to evaluate sales prospects in Europe before deciding on the possible opening of a factory in the region, one of its top executives said on Thursday.

Ma Lei, the general manager of Dongfeng international business, was speaking at a product event in Turin, Italy, amid attempts by the Italian government to convince Chinese automakers to produce in the country.

Rome has said it is in discussions with Chinese companies including Dongfeng and Chery Auto. Talks with Dongfeng officials about an auto plant in Italy are at an advanced stage, sources said in August.

Asked whether Dongfeng had already visited potential sites in the country, Ma Lei said it was "too early to have an initial idea".

"Many ask us about a plant in Europe, but we need to assess the whole situation first, including from the point of view of customers," he added.

"As a first step we need to take care of brand (development) and distribution," he said.

Dongfeng has recently started selling cars in Europe.

Italy is engaging with Chinese groups at it seeks to revive its domestic automotive output by attracting another major automaker to the country to flank Fiat-parent Stellantis

.

The Italian government is studying potential sites for a Chinese auto plant including in the northwestern Piedmont region whose capital is Turin, the historic home of the Fiat brand.

(Reporting by Giulio Piovaccari, editing by Alvise Armellini and Gavin Jones)

((giulio.piovaccari@thomsonreuters.com))

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