Stellantis is preparing a possible restructuring of its European plants because its factories in France, Italy, Spain, and Germany are operating significantly below capacity. The planned sale or division of individual sites will thus affect key industrial regions. The triggers are weak car demand, delayed electric vehicle plans, and high costs. Delegations from Chinese manufacturers are already visiting plants in Europe. This is increasing political pressure, as jobs, suppliers, and regional value creation are at risk. (italpassion. 24.04.26)
Overcapacity forces Stellantis to reorganize
The company is reassessing its European production because several plants are under-producing vehicles. Internally, the excess capacity is apparently equivalent to about four complete factories. Therefore, Stellantis is examining several scenarios.
Demand remains below pre-pandemic levels. At the same time, the shift to electric vehicles is complicating many investments. Furthermore, new models are delaying industrial planning.
Sales are becoming a focus alongside partnerships
The names Cassino, Rennes, and Madrid are mentioned most frequently. A German location is also under consideration, with Rüsselsheim being specifically mentioned. However, Stellantis has not yet announced a final decision.
Selling individual plants is considered an option alongside collaborations. Stellantis could also share production lines with other manufacturers. This is intended to improve plant utilization.
Chinese Manufacturers Examine European Plants
Dongfeng Motor Corporation plays a key role in this, as the manufacturer has a long-standing relationship with Stellantis. Delegations are reported to have visited plants in Rennes, Madrid, Italy, and Germany. Other Chinese manufacturers are also apparently interested.
The involvement of external partners could secure individual plants. At the same time, it would shift the balance of control over European car production. Therefore, the issue is likely to become politically sensitive in France and Italy.
Italy Reports More Than 1,000 Layoffs
The situation in Italy is already worsening, as several plants are reducing staff. Since the beginning of the year, more than 1,000 layoffs have been announced. Melfi, Pomigliano, Mirafiori, Atessa, and Termoli are particularly affected.
The sale is therefore more than just a financial matter. Stellantis is also deciding on the future role of Europe within the group. The new strategic plan is expected to provide more clarity on May 21.