Stellantis Considers China Partnerships for Four European Plants
Stellantis has shortlisted four European factories—Rennes, Cassino, Madrid and one unnamed site—for potential sale or partnerships to address surplus capacity. Talks include discussions with Dongfeng Motor Corp. on joint production agreements spanning Europe and China, though no final decisions have been made.
1. Excess Capacity and Plant Selection
Stellantis has identified four plants in Europe with surplus capacity, including Rennes in France, Cassino in Italy and Madrid in Spain, plus an additional unnamed site. These moves aim to optimise its 20 assembly plants across Europe where it ranks second after Volkswagen.
2. Discussions with Dongfeng
Executives are engaging Chinese manufacturers, notably Dongfeng Motor Corp., exploring joint production agreements that could revive partnerships in Europe and China. Dongfeng representatives toured the Rennes and Madrid plants earlier this month to assess facility capabilities and collaboration potential.
3. Potential Partnership and Sales Structures
Negotiations remain fluid with no finalized deals; options include minority or majority stake sales, joint-venture operations to fill excess capacity, and technology-sharing agreements. Interest from other Chinese automakers suggests Stellantis could strike separate deals across multiple sites.
4. Impact on Workforce and Suppliers
Any partnership or sale could lead to workforce reductions and adjustments for suppliers. Stellantis plans to repurpose its Poissy plant after 2028, triggering job cuts and affecting suppliers such as Lear Corp and Forvia, with some unions already protesting.