**China’s Chery Plans to Build Car Plant in Italy: A Threat to Fiat**

The Chinese auto industry is making bold moves to expand its presence in global markets, including Europe. Brands like Chery are looking to establish production bases in destination markets, which could pose a challenge to established Western automakers like Fiat.

**Chery’s Potential Car Plant in Italy**

Chery is currently in discussions with the Italian government to build a car plant in the country. While Italy aims to support its local brands like Fiat and Alfa Romeo, it also seeks to increase its car production from less than 800,000 units in 2023 to around 1.3 million units.

According to reports, the Italian government is exploring options to boost car production to a million units by the end of the decade. This includes engaging with Stellantis, but Italy needs to add another carmaker like Chery to meet its target of producing an additional 300,000 vehicles annually.

**Chery’s Strategic Move**

Industry Minister Adolpho Urso has revealed that Italy has previously engaged with Tesla and other Chinese automakers like Great Wall and BYD. While BYD has plans to build a factory in Hungary, Chery is emerging as a potential candidate to establish a manufacturing base in Italy.

Despite the allure of lower costs in Eastern Europe, Italy’s rich history in car manufacturing offers Chery access to a skilled workforce with relevant expertise. Sources suggest that setting up a base in Italy or Spain aligns with Chery’s strategy to offer a diverse range of vehicles, including combustion-engined, hybrids, and electric cars. The automaker is also exploring opportunities to build a factory in the UK.

**Conclusion**

Chery’s plans to expand its manufacturing footprint into Italy could disrupt the traditional stronghold of Western automakers in the region. With a focus on producing a mix of vehicle types, including electric cars, Chery is poised to make a significant impact on the European automotive market.