No auto plants available in Italy for Chinese purchase, Italian minister says

By Reuters News

ROME, Oct 14 (Reuters) - Chinese automakers looking to expand production capacity in Europe have ruled out Italy because of a lack of suitable factories, Italian industry minister Adolfo Urso said on Wednesday.

Chinese producers are looking to establish manufacturing plants inside the European Union as Brussels works on rules that will set minimum local content limits for electric vehicles sold in the ​bloc.

"They are touring Europe and what are they asking for? A turnkey factory," Urso told lawmakers in Rome, referring to a production site that would be ready to operate immediately.

He said Chinese auto industry representatives, including BYD's 002594.SZ European adviser Alfredo Altavilla, had visited plants in Italy and met Urso several times without finding suitable locations.

This was because Stellantis STLAM.MI, Italy's sole major auto producer, has decided to produce cars in partnership with Chinese companies rather than give up any of its Italian factories, Urso said.

"Stellantis, unlike other industry players, has not closed any plants in Italy and therefore has no turnkey facilities available to hand over to Chinese automakers," the minister said during a parliamentary questions session.

Altavilla told Reuters last month that BYD, unlike some of its Chinese competitors, aimed to buy and fully own a European plant rather than share it with local partners, adding that it was focusing on Spain and France.

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