Stellantis does not rule out plant closures due to the growth of Chinese competition

Tavares assures that if Chinese manufacturers achieve a 10% share in Europe, it would imply a volume of 1.5 million units

Oct. 14 () –

Stellantis CEO, Carlos Tavares, indicated in an interview published this Monday that the international automotive group does not rule out the closure of plants due to the growth of Chinese competition in Europe.

“Nothing can be ruled out,” the manager told the French financial newspaper ‘Les Échos’ before the Paris Motor Show. If Chinese manufacturers achieved a 10% market share in Europe at the end of their current campaign, this would imply a volume of 1.5 million cars, he quantified.

“That corresponds to seven assembly plants. European manufacturers would have to close them or hand them over to the Chinese,” Tavares warned.

Likewise, the manager has denounced that the tariffs will not have a relevant effect on Chinese car manufacturers, since they would be able to avoid the punitive tariffs planned by the European Union by investing in plants in Europe.

“Once that happens, we should not be surprised that production plants will have to be closed to reduce exacerbated excess capacity,” Tavares denounced.

Stellantis, which makes brands such as Peugeot, Citroën, Opel, Fiat, Chrysler and Jeep, issued a ‘profit warning’ last month, attributing the reduction in its profit forecast to the slowing sales problems it faces in the American market. of the North and the difficult general conditions of the sector, with a drop in demand for electric vehicles.

On September 30, the international automotive group cut its profit forecasts for the fiscal year 2024 and expects an adjusted operating income (AOI) margin of between 5.5% and 7%, below the “double” percentage. digit” above.

In addition, it aims to reduce shipments in North America by more than 200,000 vehicles in the second half of 2024 (double the reduction previously planned), compared to the same period of the previous year, as well as increase spending on vehicle incentives. from model year 2024 and earlier, and productivity improvements that encompass cost and capacity adjustments.

On the other hand, last Friday, Stellantis confirmed that it had already started the “formal process” to designate the successor of the current CEO, Carlos Tavares, when he leaves his position at the beginning of 2026.

Movement that came in a complementary manner with a profound restructuring of the company’s management bodies in the face of the business crisis it is experiencing.

“After the recent media frenzy surrounding my succession, the unanimous support of the board of directors and president John Elkann allows everyone to refocus and work calmly until the end of my contract,” said Carlos Tavares during the interview.