Tesla is in talks with Italy to build a factory in the country, according to a government official. Difficulties in developing production plans in Germany could be a decisive factor for the company to establish itself in another European country, he emphasized.
Italy’s Minister of Business and Made Adolfo Urso said the country is in talks with a number of manufacturers from various countries about setting up production in Italy. He said Tesla was among the automakers with whom the government held talks regarding efforts to increase car production in Italy.
“We have had conversations with producers from several countries, not just eastern ones, but western ones too,” Urso told the Lower House’s industry committee amid reported interest from Chinese maker BYD in making vehicles in Italy, according to ANSA.
In his opinion, tensions in connection with Tesla’s development in Germany may become a reason for a more decisive position of the company and its desire for further negotiations with Italy.
“A German city rejected a plan for the large-scale expansion of Tesla’s European assembly plant,” the minister said, referring to Brandenburg. “This will certainly lead to a decision by the group,” he added.
Urso said negotiations with Tesla have been ongoing for several months. Elon Musk has indeed visited Italy several times in recent months. The minister said that during the meetings, the government received “very positive” responses from Tesla, although he did not specify what that meant. He added that it is “a process that requires prudence.”
Italy did not attract automakers for many years. However, the country needs to change policies in the face of the new economic situation. The minister said that despite the potential entry of other automakers, Italy will strive to protect the interests of local companies.
“The interested producers are car companies that, at the moment, do not produce in Europe but are looking at our market with interest and are, as (ex-premier Mario) Draghi pointed out yesterday, aware that we will have to protect the internal market from competition with trade measures, as the United States is doing, and with industrial measure,” Urso said.
