Carlos Tavares, CEO of Stellantis, recently emphasized during a video conference from New York with journalists that the conglomerate is not pursuing plans to acquire other automotive companies. Instead, he highlighted the importance of strategic partnerships, the crucial role of China, and other significant topics for the automotive industry.
According to Carlos Tavares, only five major manufacturers might survive in the coming years
Tavares analyzed the entire automotive sector, pointing out that industry consolidation is an inevitable step to address the transition towards electrification and its significant associated costs. Tavares predicted that ultimately, only five major automotive manufacturers could survive, given the increasing competitive and financial pressure.
Rumors of a possible merger between Stellantis and Renault had spread recently, quickly denied first by John Elkann and then by Tavares himself. The Portuguese manager reiterated that there are currently no discussions underway on this front. The group’s focus remains firmly on achieving the goals set in the Dare Forward 2030 industrial plan, thereby excluding the possibility of being distracted by other projects.
Speculation about a potential expansion of production at the Mirafiori factory to include vehicles from the Chinese brand Leapmotor, of which Stellantis owns about 20% of the capital, has raised a lot of interest. This move could represent a strategy to invigorate the Italian plant, currently struggling with thousands of employees on temporary layoff until the end of March 2024. However, Tavares chose not to comment specifically on these rumors, while discussing the opportunity for Stellantis to produce electric vehicles using Leapmotor‘s technology in Europe, North America, and other markets requiring competitively priced models, without excluding any country hosting a Stellantis plant.
Tavares has previously expressed concern about the entry of Chinese automotive companies into Europe, pointing out that Chinese electric vehicle manufacturers enjoy a 30% cost of production advantage over Western companies. Despite this, he clarified that the most effective approach does not lie in imposing tariffs but rather in facing competition on a global scale. Carlos Tavares then concluded the video conference by highlighting the importance for Stellantis to maintain the ability to compete effectively worldwide.