Stellantis weighs deals with China rivals to shore up Europe

Published Fri, Mar 13, 2026 · 06:46 AM

[PARIS] Stellantis is exploring deals with Chinese carmakers through which they would invest in the Fiat owner’s struggling European operations, as the company focuses its own investments on the Americas, according to sources familiar with the matter.

Company executives have met with China’s Xiaomi and Xpeng to discuss options for an overhaul of Stellantis in Europe, including acquiring stakes in Maserati or other brands, said the sources, who asked not to be identified discussing private deliberations. The talks have also covered access to automaking capacity as Chinese groups seek to grow in Europe, the sources said.

“As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics, always with the ultimate aim of providing customers with the best mobility choices,” the automaker said. “The company does not comment on speculations.”

A media representative for Xpeng declined to comment. Xiaomi did not immediately respond to a request for comment.

Shares of Stellantis pared earlier losses following Bloomberg’s report and were down 1.3 per cent late on Thursday (Mar 12) in Milan. Xpeng’s US-traded ADRs advanced as much as 5.5 per cent, while Xiaomi’s rose 2 per cent.

The discussions underline the divergent trajectories of Stellantis’ businesses in Europe and the US, where the Jeep owner has kicked off investments of some US$13 billion to freshen its lineup, and where Chinese investments would be complicated by restrictions on the use of the country’s technology in US cars.

The overhaul may eventually lead to a further separation between the US and European arms of a company formed through the 2021 combination of Fiat Chrysler Automobiles and PSA Group, some of the sources said, though a full breakup is not the focus of current discussions.

“Stellantis states in the most categoric terms that there is no truth in the suggestion that it is considering a plan to split the company,” the company said. “Any assertion to the contrary is pure invention.”

The months-long discussions with Chinese companies have touched on the possibility they would take a stake in a European Stellantis entity, the sources said. There is no certainty that any deal will take place, they said.

Deeper ties with Chinese carmakers would buttress Stellantis’ European business, potentially giving it access to advanced technology for electric vehicles (EVs) and software. Its Fiat, Opel and Peugeot brands are saddled with overcapacity, intense competition and the high cost of the EV shift. Chinese manufacturers would win better access to a market that’s become a profitable outlet from a price war at home.

Stellantis also has more freedom to work with Chinese automakers in Europe. The US is effectively banning Chinese technology for connected vehicles on American roads as of 2027, and there’s a risk of political backlash in the US on transactions involving Chinese entities as the superpowers tussle over global economic and security dominance. European countries have let in Chinese EVs and they are gaining share, despite European Union tariffs.

Stellantis has been trying to stabilise its operations under chief executive officer Antonio Filosa, who was installed last year after drastic cost cuts affected vehicle quality and put off buyers. The company has also come up against an automotive energy transition that’s proved uneven, going slower than expected in some countries, including parts of Europe and in the US, where Trump has rolled back emissions mandates in his second term.

European and US carmakers have largely trailed Chinese competitors in cost and battery technology, after state subsidies from Beijing.

Stellantis’ management sees better future returns in the US and is reluctant to make significant additional investments in Europe, the sources said. In North America, Stellantis is reaping some early benefits from investments in new models that are boosting demand for popular brands such as Jeep and Ram trucks. Its business in Europe centres on a mass-market offering and faces a crowd of competitors, including Volkswagen, Renault and increasingly China’s BYD.

The company is expected to give more details about its future plans on May 21, during an investor day in the US. Asked on a conference call last month about a potential breakup of Stellantis’ European and North American businesses, Filosa said the company benefits from its global scale and tailors its products to regional markets.

The considerations follow last month’s announcement of record charges and writedowns of 22.2 billion euros (S$33 billion), many related to Stellantis’ decision to walk back its push into EVs. The strategy reversal, which included the cancellation of battery ventures and future models, wiped out a quarter of the manufacturer’s value in a single day.

The manufacturer is separately considering a deeper collaboration with its existing Chinese partner Zhejiang Leapmotor Technology, Bloomberg reported last month. Executives have acknowledged the potential for closer collaboration; the pair are exploring cooperation on EV and software technology for affordable EVs in Europe, according to sources familiar with the plans.

Stellantis’ biggest shareholder Exor, the Fiat-founding Agnelli family’s investment company, has been reshaping its portfolio under CEO John Elkann. The billionaire has been gradually steering the company beyond its traditional automotive focus while retaining core industrial holdings. BLOOMBERG