Stellantis and Ford said partnerships with Chinese manufacturers and established rivals are becoming necessary in a European car market marked by high costs and weak demand.
Both carmakers made the case for cross-border collaboration at the Financial Times’Future of the Car Summit in London, UK.
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Stellantis chief executive Antonio Filosa described such partnerships as a potential “roadmap of technological improvement, supply chain improvement and maybe capacity utilisation,” adding that the rationale stretched well beyond Chinese partners.
Ford’s European head, Jim Baumbick, pointed to the considerable scale advantages Chinese exporters enjoy in Europe, saying his company was pursuing alliances to “generate speed and scale.”
Stellantis has moved to strengthen its existing arrangement with Chinese electric vehicle maker Leapmotor.
It was among the earliest Western manufacturers to forge such a tie-up, taking a 21% stake in Leapmotor in 2023.
Under the expanded agreement, Leapmotor will assume operational control of Stellantis’s Madrid facility, where a Leapmotor model destined for European buyers is scheduled to enter production in 2028.
The two firms are also co-developing an electric SUV under the Opel marque for assembly in Zaragoza, and will pool procurement to achieve cost savings.
Separately, Stellantis is in discussions with Dongfeng – which holds a stake in the company – over ways to address surplus manufacturing capacity, including sites in France.
Ford, meanwhile, is in talks with Geely over a joint manufacturing and technology arrangement in Europe as part of efforts to revitalise its flagging passenger car operations on the continent.
Geely is understood to be close to finalising an investment in Ford’s Spanish manufacturing facility.
Ford has also struck a deal with Renault – announced in December – to co-produce compact electric cars and vans.
For Chinese manufacturers, embedding themselves in European production networks offers a means of sidestepping import tariffs on EVs built in China, satisfying EU local content rules, and accessing state subsidies.
Filosa said partnerships with Chinese carmakers in the US were unlikely within the next two years because Chinese groups faced much higher barriers there, although he did not exclude other forms of collaboration.
