Dongfeng Motor today refuted a Bloomberg report about the Chinese state-owned carmaker intending to build a factory in Italy.

The news is "false information," China Fund News reported today, citing the Wuhan-based carmaker. An insider close to Dongfeng said the same source that the firm currently has no such plans.

Bloomberg reported yesterday that Dongfeng, a partner of Stellantis, is considering building a factory in Italy to make more than 100,000 vehicles per year. Italy has been trying to attract another carmaker to set up a local base after clashing with Stellantis' plans to cut jobs to opt for more low-cost production sites, it added. Stellantis, which is based in the Netherlands, owns brands such as Fiat, Alfa Romeo, Chrysler, and Maserati.

Italy is going electric slower than other European countries such as the United Kingdom, France, and Germany as electric cars made up just around 6 percent of all car sales last year, per the Chinese report. Late that year, the Mediterranean country introduced a new subsidy for buyers who replace their gas cars with EVs, ranging from EUR1,500 to EUR13,000 (USD1,590 to USD13,820).