Stellantis Eyes Sale or Partnered Production with Chinese Firms at Four European Plants
Stellantis has pinpointed four European factories, including Rennes, Cassino and Madrid, for potential sale or partnership to address surplus capacity. Talks with China’s Dongfeng Motor and other manufacturers involve options to share or sell facilities in exchange for technology access, while Poissy will cease car production after 2028.
1. Surplus Capacity Identification
Stellantis has shared with French and Italian authorities that it holds four underutilized factories in Europe—Rennes in France, Cassino in Italy, Madrid in Spain and one other site—out of its roughly 20 regional assembly plants. Management views these sites as candidates for sale or collaborative operation to better align production with market demand.
2. Initial Talks with Chinese Automakers
Representatives from China’s Dongfeng Motor Corp. toured the Rennes and Madrid plants as part of exploratory discussions on reviving a Europe-China venture. Other Chinese manufacturers have also shown interest, signaling Stellantis could negotiate separate agreements with multiple partners to optimize output and technological exchange.
3. Deal Structures and Technology Exchange
Current talks focus on joint production or facility-sharing arrangements, potentially granting partners access to Stellantis’ electrification and connected-vehicle technologies in return for filling idle capacity. Executives have not finalized any sale or partnership, leaving both sale and co-ownership options on the table.
4. Poissy Retooling and Labor Impact
Separately, Stellantis plans to end car production at its Poissy plant after 2028, transitioning the facility for alternative uses. This reconfiguration is expected to trigger workforce reductions and affect suppliers such as Lear Corp. and Forvia SE, prompting labor union demonstrations to protest job cuts.