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Italy cuts automotive industry support to avoid funding cars made in China

Published 11/07/2024, 09:12 AM
Updated 11/07/2024, 09:15 AM
© Reuters. FILE PHOTO: Omoda 5 EV manufactured by Chinese automaker Chery is displayed during an event to launch Omoda and Jaecoo cars on the Italian market in Milan, Italy, July 4, 2024. REUTERS/Daniele Mascolo/File Photo

ROME (Reuters) - Italy's government plans to cut funds previously set aside to support the country's automotive industry to avoid funding cars made in China, the economy minister said on Thursday.

As part of next year's budget, Rome wants to divert 4.6 billion euros ($4.96 billion) out of the 5.8 billion euros earmarked for the 2025-2030 period to fund the automotive sector.

© Reuters. FILE PHOTO: Omoda 5 EV manufactured by Chinese automaker Chery is displayed during an event to launch Omoda and Jaecoo cars on the Italian market in Milan, Italy, July 4, 2024. REUTERS/Daniele Mascolo/File Photo

"We are not cutting funds for companies that want to carry out conversion processes, we are cutting funds for incentives aimed at supporting electric cars made in China or other countries," the Economy Minister Giancarlo Giorgetti said.

($1 = 0.9267 euros)

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