Stellantis Plans to Sell Factories in Multiple European Countries, Chinese Delegation Has Visited for Inspection

Rumors circulating for months are now materializing into concrete actions. With the launch of its new industrial strategy just weeks away, Stellantis Group is advancing a highly sensitive proposal: considering the sale or joint operation of some of its European vehicle plants. This decision carries far-reaching implications, directly affecting France, Italy, Spain, and Germany.

Severe overcapacity, enterprises are unable to absorb

The group has directly faced the core issue: the actual capacity utilization of major factories in Europe is severely insufficient, and the group's idle capacity is equivalent to the total capacity of four complete vehicle factories.

A confluence of multiple factors has led to the current impasse: on one hand, overall automotive market demand has yet to rebound to pre-pandemic levels; on the other hand, the comprehensive transition to electrification is lengthening the industry cycle and dampening corporate investment willingness, significantly slowing the pace of new vehicle launches. Under the leadership of Antonio Filosa and oversight of John Elkann, the Group’s management has identified several alternative measures, including capacity reduction, plant consolidation, or bringing in external industrial partners.

Factory list exposure: Cassino, Rennes, Madrid, and German plants included.

Multiple core factories have been included in the adjustment scope. The Italian Cassino plant has the weakest operational performance, with its output continuously declining over the past few months; the Rennes plant in France, the Madrid plant in Spain, and a production base in Germany (speculated to be Rüsselsheim) have all been named.

The group has not prioritized shutting down production plants but instead seeks new operational models—for example, sharing production lines with other automakers to improve equipment utilization rates and restore profitability to long-idle production infrastructure. Another, more radical option is to directly sell off certain plant assets.

Already entered into negotiations with the Chinese partner Dongfeng.

Previously, the cooperation concepts were only speculative, but they are now gradually taking shape. Stellantis has launched formal discussions with its long-term partner, the Dongfeng Motor Corporation. Multiple Chinese automotive delegations have recently visited various factories in Europe, including Rennes, Madrid, as well as production bases in Italy and Germany, with the core purpose of evaluating the feasibility of jointly producing European-standard and global vehicles.

In addition to Dongfeng, other Chinese automakers have also expressed interest in cooperation. Stellantis may adopt a localized, plant-by-plant negotiation approach, leveraging local industrial conditions and policy constraints to implement multiple cooperation agreements.

Industrial challenges compounded by political pressure lead to diverging national stances.

This factory restructuring has long surpassed the scope of business operations and carries high political sensitivity. The French political arena is highly cautious about this, and as the election approaches, the takeover of a local heritage factory by Chinese capital could easily turn into a sensitive and controversial issue. The Italian government's attitude is relatively open, with the core bottom line being to preserve local employment. The Italian Minister of Industry has publicly stated that foreign investment is welcome to help struggling factories (such as the Cassino factory). The Italian Minister of Industry has previously held talks with Chinese automakers such as BYD, Chery, Geely, MG, and Great Wall, aiming to boost Italy's domestic automotive production. The establishment of new partnerships can also create synergies with existing Chinese industrial layouts in Italy, such as Weichai's stake in Ferretti Group and Sinochem's holding of Pirelli.

Meanwhile, union protest sentiments continue to intensify. The Italian Metalworkers' Union (FIOM-CGIL) is demanding that the group immediately initiate tripartite dialogue with the government and the company before making any official announcement. As cooperative negotiations proceed in parallel, the group is implementing a large-scale voluntary redundancy program.

Layoffs exceed 1,000 as Europe's manufacturing system undergoes deep restructuring

Since the beginning of this year, multiple factories in Italy have announced layoff plans affecting over a thousand employees. The Melfi plant alone, on top of its 2025 layoffs, will add hundreds more positions to its reduction target; plants in Pomigliano, Mirafiori, Atessa, and Termoli are similarly affected. Officially described as workforce restructuring, this move in fact signifies a fundamental transformation of Stellantis's European industrial model.

This transformation encompasses multiple objectives: comprehensively reducing production costs, adapting to the demands of the new energy power transition, and fundamentally reshaping the strategic positioning and functional roles of European factories.

Meanwhile, Chinese automakers are accelerating their presence and seeking local production bases in Europe. The chairman of Chery Automobile recently stated at an event in Paris that, compared to investing heavily in building new vehicle assembly plants, the company prefers to directly utilize existing idle production capacities in Europe for localized manufacturing.

Stellantis plans to focus its investments on core brands.

Stellantis, the multinational automotive giant, plans to increase financial investment in its four core brands—Jeep, Ram, Peugeot, and Fiat—potentially at the expense of its German subsidiary brand, Opel.

Antonio Filosa, CEO of Stellantis Group, plans to fully redirect the Group’s R&D and production capacity investments toward its core brands. Internal sources familiar with the plan confirmed that Jeep, Ram, Peugeot, and Fiat will receive significantly increased budget allocations. Opel and other volume-oriented, mass-production brands will henceforth rely on the technological platforms of the four core brands for vehicle development and manufacturing. The remaining niche brands will scale back operations, focusing instead on their home markets where they possess growth potential. Stellantis’ official statement asserts that its multi-brand portfolio remains a core corporate strength, though it has not disclosed specific details of the adjustments.

Some investors and analysts had previously suggested that Stellantis shut down some of its weaker brands, including Opel. However, insiders revealed that Antonio Filosa rejected such shutdown proposals, believing that these brands still have development opportunities in specific regions and local markets. Analysts stated: "As the market environment evolves, some marginalized brands may still have the potential to create value in the future. Once a brand is phased out, it is extremely difficult to restart and revitalize it."

Antonio Filosa will officially announce the new strategy covering the group's 14 automotive brands in Detroit this May. The adjustment plan has received support from major shareholders, including the investment institution of the Agnelli family.

Currently, all plans have not been finalized, and the overall adjustment is still in the early stage of assessment, with multiple integration paths being evaluated in parallel. However, it is clear that: Stellantis will officially announce its new development strategy for the European region on the Capital Markets Day on May 21. Amid the balancing act of retaining local production capacity, seeking industrial cooperation, and divesting non-core assets, the group is fully committed to securing the survival and future development of its European business.