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Stellantis may share European plants with Dongfeng in exchange for China-based production
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[PARIS/WUHAN] Stellantis is discussing reviving a partnership with Dongfeng Motor that would involve joint car production in Europe and China, according to people familiar with the matter.
The companies are in talks about giving Dongfeng access to underused Stellantis factories in Europe, the people said, asking not to be identified discussing private deliberations. Dongfeng may in turn make cars from selected Stellantis brands in China, some of the people said.
Representatives for the state-owned manufacturer visited sites in Germany and Italy recently, some of the people said. The deliberations include Dongfeng possibly acquiring or investing in one or more European plants at a later stage, they added.
The talks with Dongfeng are part of a bigger push by Stellantis to bolster its business, which is grappling with uneven demand and intensifying competition from the likes of Volkswagen and BYD Stellantis executives also previously met with China’s Xiaomi and Xpeng to discuss overhaul options, Bloomberg reported last month.
While those talks have not yet produced an agreement, Stellantis may still make deals with more than one Chinese company, the people said. The automaker has been working with Leapmotor on sales in Europe and is considering using more of that partner’s technology to strengthen its mass-market brands such as Fiat and Opel.
“As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics, always with the ultimate aim of providing customers with the best mobility choices,” Stellantis said in a statement, declining to further comment.
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“Dongfeng and Stellantis have a positive foundation for partnership, in the future we will continue to strengthen advantages that complement each other,” Dongfeng said. China offers vast opportunities for growth and collaboration for Stellantis, a company representative said this week at an event in Wuhan, Les Echos reported.
Closer cooperation with Dongfeng would rekindle a partnership that got its start in the early 1990s, when PSA Group – a predecessor to Stellantis – formed a joint venture with the Chinese company to access the growing market. In recent years though, sales and output shrunk dramatically due to rising competition. The latest talks with Dongfeng have not been finalised and may still fall apart, the people said.
Bringing in a manufacturing partner in Europe could help reduce costs, improve plant utilisation and avoid politically sensitive closures. The company operates dozens of factories in the region, several of which are underutilised. Chinese automakers, meanwhile, are looking for local production to sidestep European Union tariffs as they expand in the bloc.
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Stellantis has long tried to bolster some of its struggling European brands such as Alfa Romeo and Maserati. The latter, a luxury-car maker that produces exclusively in Italy, has contended with sliding sales, including in China. In the first quarter, the Cassino factory that makes Alfa Romeo and Maserati models was Stellantis’s only site in Italy where output declined. Maserati in January said it was open to technology partnerships.
The Stellantis search underlines the divergent trajectories of the group’s businesses in Europe and the US, where the Jeep owner has kicked off investments of some US$13 billion to freshen its lineup. There, Chinese investments would be complicated by restrictions on the use of the country’s technology in American cars. Earlier on Wednesday (Apr 15), Stellantis reported rising global first-quarter car shipments led by North America.
Stellantis has hired advisers including McKinsey & Co to aid this widespread review of its operations, the people said. chief executive officer Antonio Filosa is expected to outline further strategic steps at a capital markets day on May 21 – including measures to improve returns in Europe while prioritising investment in North America. BLOOMBERG
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MDDI (P) 046/10/2024. Published by SPH Media Limited, Co. Regn. No. 202120748H. Copyright © 2026 SPH Media Limited. All rights reserved.
