MEDIA reports say beleaguered Stellantis is exploring potential partnerships with Chinese car-makers as it seeks to strengthen its struggling European business amid rising competition and the ongoing shift to electrification.
Separately, the manufacturer is said to considering a deeper collaboration on EV and software technology with its existing Chinese partner Zhejiang Leapmotor Technology Co.
According to Bloomberg, the automotive giant has held discussions with other Chinese technology and EV companies including Xiaomi and Xpeng, examining options that could involve investment into its European operations or closer collaboration on manufacturing and technology.
For its part, Stellantis has not confirmed any specific plans but acknowledged it “routinely engages with global industry players”.
“As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics,” the company said in a statement.
Bloomberg’s report says the talks highlight the challenges facing Stellantis in Europe, where its brands – including Fiat, Peugeot and Opel – are contending with overcapacity, intensifying competition, and the high cost of transitioning to electric vehicles.
Chinese manufacturers are rapidly gaining ground in the region, leveraging strong EV technology, and cost advantages developed in their domestic market.
A potential partnership could provide Stellantis with improved access to advanced EV and software technology, while also helping to better utilise its European production capacity.
In return, Chinese carmakers would gain greater access to the European market, which has become an attractive export destination.
According to the report, the discussions come as Stellantis increasingly prioritises investment in North America, where it has committed around $US13 billion ($A20b) to new products and technologies.
On a positive note, the company has seen improving demand for key brands such as Jeep and Ram, while regulatory and political conditions in the US make collaboration with Chinese firms more complex.
By contrast, Europe remains a more open environment for Chinese investment, despite the introduction of tariffs on some imported electric vehicles.
Industry observers say this divergence could lead to greater separation between Stellantis’ regional operations, although the company has rejected suggestions it is considering a formal split.
Stellantis states categorically that there is no truth in the suggestion that it is considering a plan to split the company.
Against that, reports indicate discussions have included the possibility of Chinese partners taking stakes in parts of Stellantis’ European operations, potentially involving brands such as Maserati.
No agreement has been reached however, and there is no certainty that any deal will proceed.
For background, Stellantis has recently faced a challenging period financially with its share price declining significantly over the past two years.
The company recently announced €22.2 billion ($A37b) in charges and write downs, partly linked to scaling back aspects of its electric vehicle strategy.
Bloomberg says the broader automotive transition has also proven uneven, with EV adoption slowing in some markets including parts of Europe and the United States.
At the same time, traditional carmakers continue to trail Chinese rivals in battery technology and production costs.
“Stellantis is already exploring deeper collaboration with its existing Chinese partner Leapmotor, focusing on affordable EVs and software development for European markets,” the report said.
“The company is expected to outline more details on its future strategy at an investor day scheduled for 21 May in the US
“For now, Stellantis appears to be weighing a more flexible, partnership-driven approach in Europe as it navigates an increasingly competitive and rapidly evolving global automotive landscape.”