Stellantis Eyes Xiaomi, XPeng Investment in European Operations to Accelerate EV Transition

Stellantis is engaged in in-depth negotiations with Xiaomi and XPeng regarding the restructuring of its European operations, and a potential equity stake by Chinese automakers in brands such as Maserati has not been ruled out. Facing profit pressures in Europe, overcapacity, and high costs associated with its electrification transition, Stellantis plans to shift its investment focus toward the Americas while seeking Chinese capital and technological support. The two sides have held discussions for several months, covering topics including Chinese automakers utilizing Stellantis’ European manufacturing capacity and potential equity investments. If a deal is reached, Chinese carmakers could gain a foothold to expand into the European market, while Stellantis could leverage China’s strengths in electric vehicles and software to revitalize its business. No agreement has been finalized yet. CEO Carlos Tavares is spearheading the company’s strategic realignment to address the brand trust crisis caused by previous aggressive cost-cutting measures.