Stellantis Considers Sale or Sharing of Rennes, Cassino, Madrid Plants
Stellantis is in talks to sell or share multiple European assembly plants, including Rennes, Cassino and Madrid, with Chinese carmakers such as Dongfeng to address surplus capacity. It also plans to cease production at its Poissy factory after 2028, triggering potential job cuts and impacts on suppliers.
1. Operational Review Targets European Overcapacity
Stellantis has initiated discussions to reduce surplus capacity across its roughly 20 European assembly plants by exploring full sales or co-production deals. The evaluation covers sites in France, Italy, Spain and Germany, with no final decisions yet on individual assets.
2. Potential Chinese Partnerships
Negotiations include a possible renewal of joint manufacturing activities with Dongfeng in both Europe and China, alongside interest from other Chinese carmakers. Proposed factory-sharing arrangements could grant partners access to Stellantis technology in exchange for utilizing underused capacity.
3. Poissy Factory Conversion and Job Implications
Production at the Poissy plant near Paris is slated to end after 2028 as part of the capacity rationalization, a move expected to lead to workforce reductions. Key suppliers such as Lear, Forvia and OPMobility may experience order adjustments tied to the plant’s conversion.
4. Political and Regional Reactions
The prospect of Chinese involvement in French plants is drawing political scrutiny ahead of France’s presidential vote, while Italy’s government has publicly welcomed foreign investment. Management under John Elkann and Antonio Filosa faces the challenge of balancing cost reductions with regional sensitivities.