Stellantis admits closing its factories in Europe due to Chinese competition – Observer

Automaker Stellantis CEO Carlos Tavares acknowledged on Sunday the possibility of closing assembly plants in Europe, after Chinese manufacturers were installed on the continent.

“Closing the borders to Chinese products is a trap. They will overcome the obstacles, and invest in factories in Europe that will be partly financed by state subsidies, in low-cost countries,” the Portuguese businessman said, in an interview with the French newspaper Les Echos, reported by AFP. Press.

Chinese electric cars sold in Europe will have to pay import taxes of up to 45% from the end of October.

Some Chinese manufacturers, including BYD, have announced that they will open units in Europe to avoid these additional duties, a situation that could be seen as a threat to Stellantis, as Carlos Tavares admitted.

“Nothing should be ruled out. If the Chinese get 10% market share in Europe at the end of their attack, that means they will produce 1.5 million cars. That represents seven assembly plants. European manufacturers will then be forced to close or move them,” he warned. To the Chinese.

Volkswagen was the first to surrender, citing the closure of factories in Germany.

“For our part, there is no reason to accept a decline in our performance. If China advances in Europe, even if we maintain our break-even point under the activity threshold of 50%,” he noted.

Meanwhile, the group has already confirmed that Carlos Tavares, 66, will retire in January 2026.

Stellantis had already revised its 2024 margin targets significantly, even though it had posted margins above 10% since its inception in 2021. “If the context makes achieving this target completely stupid, we will not stick to it at all costs.” male.

Stellantis is a multinational automobile conglomerate resulting from the merger of Fiat Chrysler Automobiles and the French PSA Group.

In Portugal, Stellantis owns the Mangualde production center, in the Viseu region.

According to the company's website, about 900 employees work in this center, divided into three shifts, and this center produces an average of 363 vehicles per day. The Mangualde Production Center was the first automobile assembly plant established in Portugal in 1962. It has produced more than 1.5 million cars of 24 different models.