The rumor first reported last month by Start Magazine and immediately denied by the Italo-French Group is making a strong comeback: Stellantis is allegedly in talks with one or more Chinese brands to bring them to Europe, following the example already set with the electric car startup Leapmotor.
WHY IS STELLANTIS COURTING CHINESE BRANDS?
Stellantis has a dual objective, as confirmed by Bloomberg recently: on one hand, to produce models in China and especially to work closely with Chinese brands whose onboard technology know-how is currently unparalleled; on the other, to open the doors of underutilized European plants to present ready-made solutions to Asian “rivals” seeking a foothold in the Old Continent.
PLANTS FOR RENT TO THOSE WHO INTEND TO USE THEM?
The gates of several Italian plants with a very uncertain future, closed for a long time due to furlough (Cassino immediately comes to mind, but it is not the only one), could reopen. However, what Beijing decides to do will need to be seen because there is a precedent regarding Leapmotor that could be an obstacle. Initially, vehicles from the Chinese company seemed destined for the Polish plant in Tychy, only to be redirected at the last minute to Spain. The reason? It appears to be Chinese hostility towards those European countries that voted “yes” to EU tariffs against Chinese electric cars. Italy, like Poland, is among them.
In any case, the changed international landscape due to Donald Trump’s outbursts seems to be pushing China toward more moderate views, intensifying dialogue with Europe, destined to become a preferred export destination. Not surprisingly, in the very recent period, Chinese delegations have reportedly visited some Stellantis sites in Italy and Germany, according to Bloomberg. The news agency also speculates about future direct investments in factories on European soil, considered essential to circumvent the trade barriers erected by Brussels along EU borders.
WHICH CHINESE BRANDS IS STELLANTIS EYEING?
Bloomberg even ventures to speculate about possible future acquisitions of some hubs and has already reported ongoing talks with Xiaomi and Xpeng, but now media attention for a possible strategic alliance is focusing on Dongfeng, already a 1.5% shareholder and longtime collaborator with the Group’s French branch led by Antonio Filosa through the joint venture Dongfeng Peugeot-Citroën Automobile Company (discussed here).
A JV that has never faltered over all these long years; in fact, last summer it gave birth to a new brand, Hedmos, in Chinese Shijie, produced in Wuhan, Hubei province. There, a fully electric SUV is churned out at a ridiculously low price for the Western market: less than 16,000 euros. But at the moment, there are no plans to see it in these latitudes unless – of course – it becomes part of the partnership rumored in recent hours.
STELLANTIS OFFICIAL DISTRIBUTOR OF CHINESE BRANDS?
What is certain is that the same strategy as already written on these pages could be used by the European manufacturer, currently fully focused on the 13 billion investments on American soil to please the fickle Donald Trump, also to defuse possible diplomatic incidents with Canada.
It should not be forgotten that Stellantis, to accommodate the protectionist whims of US President Donald Trump, has started transferring production of cars made in Canada destined for the US market directly to US factories (specifically to a plant that had been hastily reopened after the decision to shut it down to avoid new strikes by the powerful UAW union).
Ottawa did not take it well at all and threatened the Group with heavy legal countermeasures. The solution identified by the European manufacturer would therefore be to replace its own production with that of the Chinese partner Leapmotor. In this way, the Asian ally would enter the New World (although the US would still be closed off to cars made in China), and Canada would not suffer the employment fallout from the shutdown of its plants.
In short, if these rumors prove true, Stellantis’s future seems increasingly “US-centric” while Chinese brands would fill the gaps left in less central markets. The Group, however, continues to deny, admitting the talks but dismissing them as routine multinational dialogues. On May 21, when the company finally unveils the first industrial plan of the Filosa era, more will be known.
