Stellantis, Filosa: "Too much capacity in Europe", strikes deals to avoid closures

Stellantis, the car manufacturer, has identified excess production capacity, particularly in Europe, as a significant issue. CEO Antonio Filosa emphasized during the Paris Automotive Summit that the company does not intend to close plants and instead aims to utilize its facilities through partnerships with Chinese manufacturers Leapmotor and Dongfeng.

Filosa outlined this strategy at the summit, held as part of the Paris Motor Show. The focus is on sharing industrial capacity and using existing facilities in alignment with demand, preventing the introduction of products that directly compete with other Stellantis brands.

The collaboration with Leapmotor allows for the combination of technological expertise, industrial capacity, and market access. Part of the production could potentially be located in Europe to better serve European customers and expand the range of affordable electric vehicles. This partnership model extends to other Chinese players and partners in markets like India.

The aim is to integrate partners’ technologies with Stellantis' own industrial experience, sales network, and consumer knowledge, thereby accelerating the development of new models and improving plant utilization.

An additional source of advantage lies in Europe’s distribution network, which enables competitive products to reach the market more efficiently due to well-established commercial infrastructure. Looking forward, Stellantis is committed to investing in battery production, with existing European gigafactories already built with two partners.

Filosa emphasized the need for further development of battery gigafactories to support demand and meet Made in Europe requirements, highlighting European battery production capacity as a key issue for strengthening the automotive sector's competitiveness.

On the industrial and technological front, Stellantis is set to launch the new global Stla One platform, which will initially be used by Peugeot in France and later rolled out to other brands in Europe and North America. This initiative is part of the Fastlane 2030 plan, involving a total investment of 60 billion euros, with 40 percent allocated to cross-cutting technologies shared among brands and markets.

The approach will also be applied to engine development, with the creation of common powertrain families applicable across various regions. This strategy aims to minimize duplication, maximize economies of scale, and channel a significant investment portion into shared solutions while leaving 60 percent for individual brand-specific needs.

Regarding regulatory matters, Filosa called for a swift agreement on the revision of European CO2 emissions rules and measures to support Made in Europe. He noted that the car industry largely agrees on 90 percent of the issues, urging the remaining differences to be resolved promptly. The talks also involve diplomatic initiatives by France and Germany, along with meetings with manufacturers and suppliers promoted by French President Emmanuel Macron.

Prior to the Paris Motor Show, Stellantis unveiled six concept cars, including models from Alfa Romeo, Citroën, DS Automobiles, FIAT, Opel, and Peugeot, showcasing its focus on design, innovation, and new mobility solutions as part of the Fastlane 2030 strategic plan.