Stellantis' top executive does not dismiss the possibility of factory shutdowns.
**Opel's CEO's parent company boss, Carlos Tavares from Stellantis, doesn't dismiss the idea of plant shutdowns in light of the auto industry's sales slump and competition from China. In an interview with French newspaper "Les Echos," Tavares stated, "Nothing's off the table." If China manages to grab a 10% market share in Europe, that equates to around 1.5 million vehicles. "That's roughly equivalent to seven manufacturing facilities. European manufacturers would either need to shut down these plants or transfer them to the Chinese."
Regarding the EU's proposed tariffs on Chinese electric vehicles, Tavares suggested that China would skirt these restrictions by establishing factories in Europe themselves. "If they do, it shouldn't come as a shock if some facilities have to close to trim excess capacities."
In September, Stellantis, which owns automakers like Peugeot, Citroën, Opel, Fiat, Chrysler, and Jeep, had to lessen its earnings predictions for this year due to challenges in the North American market and the overall industry's weak state. Tavares' contract lasts until early 2026, after which he plans to retire. Already, Stellantis is on the hunt for a new CEO.**
The Stellantis Chief, Carlos Tavares, has stated that European manufacturers may need to shut down facilities or transfer them if China manages to capture a 10% market share in Europe. In his contract discussions for the CEO position at Stellantis, potential successors might need to consider the impact of Chinese competition and potential plant closures.
