Dongfeng Motor (HKG:0489) will have to assess sales potential in Europe before establishing a factory on the continent, Reuters reported Thursday, citing Dongfeng's international business general manager Ma Lei.

The development comes as Italian officials are trying to negotiate with Chinese automobile manufacturers including Dongfeng and Chery Auto to set up shop in the country, the report said.

The Italian government plans to revive the domestic auto industry by inviting a major automotive manufacturer to make vehicles alongside Fiat parent Stellantis, the report said.

Shares rose 2% during Friday's afternoon trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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