This is not the first time that rumors have circulated suggesting that Stellantis is negotiating with several Chinese manufacturers. These rumors were further fueled by investments made in one of them, Leapmotor, with which it later signed a production and distribution agreement in the West. The agency Bloomberg returns to the subject, citing Xpeng and the outsider Xiaomi, a hi-tech giant recently entering the scene.
ARE THE CHINESE LOOKING FOR A PASSAGE TO THE WEST?
The agency implies that the Chinese are interested in finding a “passage” to enter Western markets increasingly closed off by tariffs and restrictions on the use of their technology (the European Commission itself, in response to the protectionism of American supply chains, has just presented a proposal to favor industries relying on “made in EU”), while Stellantis, in severe economic crisis, is seeking capital.
WILL CHINESE CARS BE PRODUCED IN STELLANTIS FACTORIES?
There would also be a sharing of spaces in Western factories that the Franco-Italian Group is currently underutilizing. And in this case, the thought naturally goes to Italian plants, which in many cases over the past two years have recorded more days of layoffs than full activity.
The move would, in some ways, mirror what was already seen with Leapmotor: Chinese brands would gain extremely widespread and capillary distribution channels without the need to build proprietary ones from scratch, while Stellantis would have the opportunity to get its hands on Asian know-how, never so coveted since the Dragon’s top players are highly advanced both in onboard software (including, for example, level 3 autonomous driving systems on which the European Group has recently put on the brakes) and in the production of low-cost electric cars.
Moreover, it should not be forgotten that Stellantis not only abruptly halted electric car development, but has also just lost the battery gigafactory that was supposed to represent the second life of the Termoli plant, planned and then shelved within the JV with Total and Mercedes.
IF STELLANTIS’ INVESTMENTS FOCUS ON THE USA, DOES EUROPE REMAIN UNPROTECTED?
The rumors also highlight possible divergent future trajectories of Stellantis’ activities in Europe and the United States: in the latter market, as is well known, the Group has launched investments of about 13 billion dollars to renew its range, redesign a supply chain that is less and less Mexican and Canadian and increasingly American, and, most likely, satisfy the ever more pressing demands of Donald Trump, but this move has raised fears that such attention leaves the flank exposed regarding activities in the Old Continent. And there, Chinese activities would thus have the possibility to “slip in,” bringing capital to invest in Europe.
TOWARDS A SEPARATION OF USA AND EUROPEAN ACTIVITIES?
The reported rumors effectively suggest the Stellantis management’s intention to face the ongoing crisis with a further separation between the US and European branches, almost a complete split or at least a deep reorganization that would lead the two realities separated by the Atlantic to run on parallel tracks. Even in this case, in some ways, this is not a new topic: many analysts argue that the merger between FCA and PSA created a behemoth that needs to be deeply redesigned to make it more agile and free of costly redundant structures.
WILL MASERATI SPEAK CHINESE?
But, above all, the rumors have rekindled another recurring theme: the possible sale of Maserati, the historic Italian premium car brand now in severe crisis, to a Chinese player. In this case, it would generally be a participation.
STELLANTIS DENIES, BUT…
Stellantis, for its part, flatly denies, as it has done on previous occasions, but only up to a point, indeed admitting the existence of talks with rival Chinese companies, to be understood as “normal business activity. Stellantis holds discussions with a number of industry players worldwide on various topics, always with the ultimate goal of providing customers with the best mobility choices,” the automaker said in a statement, adding that “the company does not comment on speculation.”
Only on one point does the Group chaired by John Elkann intervene: “Stellantis categorically states that there is no truth to the hypothesis that it is considering a plan to split the company – the company said – Any contrary statement is pure invention.”
We can only wait for the upcoming May 21 when, during the investor day in the United States, Stellantis will unveil the Group’s industrial plan. As noted by many, the fact that a US stage was chosen should in itself be a sign of renewed attention to that market, a possibility that strengthens some of the rumors circulating online in recent hours.
