Carlos Tavares, CEO of the Stellantis automotive group, indicated in an interview published on Monday that the company is not ruling out factory closures due to competition from China.
“Nothing can be ruled out,” Tavares told French financial daily Les Échos. If Chinese manufacturers were to secure a 10% market share in Europe by the end of their current campaign, this would imply a volume of 1.5 million cars, he said.
“That corresponds to seven assembly plants. European manufacturers would then have to close them down or transfer them to the Chinese,” Tavares said.
He predicted that Chinese carmakers would avoid punitive tariffs planned by the European Union by investing in factories in Europe.
“Once that happens, don’t be surprised if production sites need to be closed to reduce worsening overcapacity,” Tavares said.
Stellantis, which makes brands such as Peugeot, Citroën, Opel, Fiat, Chrysler and Jeep, issued a profit warning last month, attributing the decline in expected profits to problems in the North American market and general difficult conditions in the sector .
Tavares’ contract runs until early 2026, when he retires. Stellantis is currently looking for a successor.
