Alexandre
Not a day goes by without a new development in the Italian automotive industry. According to increasingly insistent rumors, a Chinese group.., Dongfeng Motor Corporation is said to be in the running to take over an Italian plant owned by Stellantisone of the world's automotive giants. This prospect, although unconfirmed, is already arousing keen interest in industrial and political circles, both in Italy and beyond.
Dongfeng: a former ally turned potential competitor
Dongfeng, one of China's top five automakers, is no stranger to Stellantis. Ten years ago, Dongfeng participated in the recapitalization of PSA Peugeot, becoming an important strategic partner with a 14 % stake in the French company. However, the creation of Stellantis led to a dilution of this stake to around 1.5 %, and relations between the two entities gradually cooled.
Today, as Stellantis seeks to withdraw from this partnership, Dongfeng could bounce back unexpectedly in Italy, this time not as a partner, but as a competitor. The Chinese manufacturer is said to be in advanced discussions with the Italian government for a take control of a plant in difficultypotentially the Termoli plant, which was initially intended to become a battery gigafactory under the aegis of Automotive Cells Company (ACC), a joint venture between Stellantis, Mercedes-Benz and TotalEnergies.
The Termoli gigafactory dead-end
The Termoli plant, once a mainstay of internal combustion engine production in Italy, faces an uncertain future. At a time when Europe is accelerating its transition to electric vehicles, Stellantis had planned to transform this plant into a battery gigafactory. However, the project was slowed down or even put on hold due to insufficient demand for electric vehicles and difficulties encountered in negotiations between stakeholders.
The Minister for Trade and Made in Italy, Adolfo Urso, recently called a meeting to clarify the plant's fate. Urso pointed out that the 400 million euros in European funds earmarked for this conversion must be used quicklyOtherwise, these resources could be redirected elsewhere. This uncertainty surrounding Termoli has opened the door to rumors. According to Gazzetta Motori, Dongfeng could take overThe new plant will benefit from the funds earmarked for its transformation into a production center for electric and hybrid vehicles. Just over 2 weeks ago, we were already talking abouta possible Chinese buyer for a Stellantis plant.
Stellantis' challenges in Italy
Dongfeng's interest in the Termoli plant is part of a wider context of difficulties for Stellantis in Italy. The group's plants in Mirafiori, Cassino, Pomigliano d'Arco and Melfi are going through a period of crisis. Production is in freefall, with a year-on-year decrease of 25 % in the first half of 2024. Production stoppages are frequent, and prospects for recovery are far from assured.
At Mirafiori, for example, production of the electric Fiat 500 and Maserati models is slowing down, and workers are facing prolonged periods of short-time working, and this is set to last until the arrival of the future Fiat 500 hybrid. In Cassino, the plant has been closed since the end of July, with resumption scheduled for mid-September, but at a capacity well below its potential. At Pomigliano d'Arco and Melfi, conditions are not much better, with redundancy plans underway and production well below installed capacity.
An opportunity for Dongfeng and Italy?
If Dongfeng manages to conclude an agreement to take over the Termoli plant or another facility in Italy, it would mark a significant step forward for the Chinese automaker in Europe. Dongfeng would be able to produce Forthing brand electric or hybrid vehicles for the European market, with an initial capacity of 100,000 units per year.
For Italy, the arrival of Dongfeng could represent an opportunity to revitalizing an ailing automotive sectorThis will help the company to grow, creating new jobs and attracting foreign investment. However, this prospect is not without risk for Stellantis, which could see a former partner become a formidable competitor on its own territory.
Appointments on September 17, when Stellantis will be asked to provide answers. about Termoli's future.
Europe is speeding up with electric cars and the Chinese themselves are going to sell their cars and the Italian car industry won't get out of it like the rest of the European car industry. They'll have to turn back the clock and fire the shareholders and financiers who know nothing about cars or the industry. And get rid of the European Commission's laws to start with, otherwise bankruptcy is guaranteed for industrialists. Look at what's happening in Germany Olaf Shoolz understood that electric cars don't work Mercedes BMW Porsche Audi Volkswagen is starting to make a U-turn.
Those who don't want to see that electric is the future of the car are out of their depth! We're going through the same period as when the railroads switched from steam to electricity. Or ships from paddlewheels to propellers, or aviation with the arrival of the jet engine. The countries that haven't taken the plunge are out! When a technology is better, you either take it and develop it, or you go under. European automakers are going to go under, not only because they didn't see anything coming from the USA with Tesla and now from China, but also because they're going backwards? Madness! By the way, the pictures of the Dong-feng in the article illustrate the phenomenal progress made by the Chinese. They could (should) be Alfas or Lancias. Superb lines, classy, with no useless Junior-type appendages... we really need to get our act together or it's all over! And yes, at the risk of sounding pro-Chinese, we need to keep Italian factories open, so benvenuti!
This thing looks like a Seat-Hyundai mix.
For Junior, the PSA-inspired design (full of superfluity) is indeed present.
What's Stellantis doing besides trying to destroy the Italian car industry? They don't understand anything, they want to switch to all-electric, which is losing ground, and yet they're putting PureTech in Italian cars. Will we also see future Giulias and Stelvios with PureTech hybrids? We'll have hit rock bottom. Stellantis is a disaster.
Selling a plant to Dongfeng in order to invade the European market with Chinese cars is deplorable.