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Reports indicate that Stellantis is discussing a European business restructuring plan with Xiaomi and Xpeng, and the possibility of Chinese companies taking equity stakes is not ruled out.
IT Home March 12 news: this evening, citing sources familiar with the matter, Bloomberg reports that Stellantis is discussing cooperation plans with Chinese automakers, hoping to inject funding into its European business by introducing Chinese capital. Stellantis currently plans to shift its investment focus to the Americas, while its European operations are facing pressure on profitability.
Sources say Stellantis executives have already reached out to Xiaomi Group and XPeng Motors to discuss restructuring plans for Stellantis’ European business. One possibility is for Chinese companies to take equity in Maserati or other brands. Against the backdrop of Chinese automakers seeking to expand their presence in the European market, the two sides have also discussed the issue of using Stellantis production capacity in Europe.
It is understood that negotiations with Chinese automakers have been ongoing for several months, including the possibility of Chinese companies taking equity in Stellantis’ European business. However, it is still not clear whether any deal will ultimately be reached.
If the cooperation is finalized, the technology and capital from Chinese automakers could help Stellantis improve its European business, especially in electric vehicle technology and software. IT Home has learned that Stellantis’ Fiat, Opel, and Peugeot brands are currently facing problems such as excess production capacity, intense competition, and high costs for the electrification transition.
Chinese automakers, in turn, hope to use this to expand their share in the European market. With fierce price wars in the Chinese domestic auto market, Europe has already become an important profit source for Chinese automakers.
Stellantis is reorganizing its business under the leadership of CEO Antonio Filosa. Filosa took office last year. Previously, the company’s aggressive cost-cutting measures led to vehicle quality issues, which affected consumer confidence.