Stellantis Weighs Sale or Sharing of Rennes, Madrid and Cassino Plants
Stellantis has opened talks with buyers and Chinese partners, including Dongfeng, to sell or share European assembly plants in Rennes, Madrid and Cassino to address surplus capacity and secure technology access. It plans to halt production at Poissy after 2028 and an operational review may trigger factory closures, job cuts.
1. Capacity Challenges and Deal Talks
Stellantis faces surplus capacity across its 20 European assembly plants and has initiated negotiations with prospective buyers and industrial partners, notably Dongfeng, for joint manufacturing or outright sales at Rennes, Madrid and Cassino to optimize utilization and gain technology access.
2. Poissy Factory Conversion and Job Impacts
As part of its network overhaul, the Poissy plant near Paris is set to cease vehicle production after 2028, a move expected to result in job cuts and affect suppliers such as Lear, Forvia and OPMobility.
3. Political and Strategic Considerations
Any partnership involving Chinese firms is likely to attract political scrutiny ahead of France’s 2027 presidential election, while Italy’s Industry Minister has signaled openness to foreign investment, and Stellantis chairman John Elkann and CEO Antonio Filosa continue to lead the capacity reduction review.