According to Reuters, on May 22nd, the CEO of Stellantis, Carlos Tavares, stated that Stellantis expects to engage in a major battle with Chinese rivals in the European electric vehicle market and warned that this would have significant implications for employment and production.
Reuters reported that the EU is expected to decide next month whether to follow the United States in imposing additional tariffs on Chinese automakers. Just on May 22nd, US government officials said that the US plans to impose tariffs of up to 100% on electric cars and electric car materials manufactured in China before August 1st.
Carlos Tavares believes that imposing tariffs on Chinese cars imported into Europe and the US is "a big trap," and Western automakers may restructure their businesses to cope with the challenges posed by Chinese manufacturers. "When you strengthen cost competitiveness, it will have social implications. However, European governments do not want to face this reality now."
Carlos Tavares said that tariffs will only exacerbate inflation and may affect sales and production. Carlos Tavares stated that a price war with Asian companies would be "very difficult" and not easy for dealers, suppliers, and original equipment manufacturers.
The Italian government has been urging Stellantis to produce 1 million cars annually in Italy, up from last year's 750,000. Carlos Tavares did not specifically respond to the above issue but outlined the imminent problem of overcapacity in the European automotive industry.
Carlos Tavares pointed out that Chinese automakers are expected to sell 1.5 million cars in Europe, equivalent to a 10% market share and production capacity of up to 10 assembly plants. "If the share of Chinese original equipment manufacturers grows... then it is obvious that overcapacity will occur unless you can compete with them."
According to Carlos Tavares, Stellantis is having "very fruitful discussions" with unions in the countries where its operations are located, "most of the time, they agree with us on the risks we face and how we should get through this period."
Last week, Stellantis and Zhejiang Leapmotor Technology Co., Ltd. announced that Leapmotor International has been officially established. With the help of Stellantis' global distribution channels, Leapmotor International plans to launch Leapmotor vehicles in nine European countries, including France, Italy, Germany, the Netherlands, Spain, Portugal, Belgium, Greece, and Romania, starting from September this year. Carlos Tavares said, "We are not just defending against the onslaught of Chinese companies but hope to be part of the Chinese onslaught."
