Stellantis Says Chinese Were Looking at Purchasing Brands

At the 2024 Paris Motor Show, Stellantis Chairman John Elkann and CEO Carlos Tavares addressed recent speculations and made their intentions clear: the company is not considering any mergers or acquisitions at this time, despite interest from other automakers. Elkann and Tavares emphasized that Stellantis is focused on optimizing its current operations and maintaining its competitive position without seeking external partnerships.

Closing the Door on Merger Speculation – 

In an interview with Agence France-Presse (AFP), Elkann directly addressed rumors about a potential merger with Renault, a French automotive company, and dismissed these reports as distractions. “We are really focused on the business, at the level of our reference shareholders, the board, our CEO, and the management team. Not on the possible distractions of consolidation operations, whatever they may be,” Elkann explained. He further highlighted that Stellantis is confident in its current scale and reach, describing the company as having a “competitive size.”

This stance is consistent with earlier comments from Tavares, who labeled the merger rumors as “pure speculation.” He reiterated that Stellantis’s focus remains on its 14-brand portfolio, including well-known names like Chrysler, Dodge, Fiat, Jeep®, Ram, Alfa Romeo, and Peugeot. While Tavares acknowledged that some brands could face changes if they become unprofitable, he clarified that the group is not actively pursuing consolidation or partnerships.

Interest from Chinese Automakers – 

While Stellantis is not seeking new partners, Tavares did confirm that the company has received offers from Chinese automakers looking to purchase certain brands within its portfolio. “Several Chinese automakers approached me to acquire some brands, but I refused,” Tavares stated during the event. This interest highlights the appeal of Stellantis’s European brands in particular, which include established names like Fiat and Alfa Romeo.

Recent reports also suggested that management from BYD, a major Chinese electric vehicle (EV) manufacturer, visited Stellantis facilities in the United States and Canada earlier this year, leading to speculation that the company might be eyeing legacy American brands like Chrysler or Dodge. However, Tavares’s refusal to accept these offers signals a cautious approach to any potential changes within Stellantis’s lineup.

A Focus on Internal Development – 

Elkann and Tavares emphasized that Stellantis is not ready to sell any brands or pursue mergers, even as the company faces challenges in the automotive market. “We’re not ready to consolidate, but we’re not ready to deconsolidate. This is not the time,” Elkann remarked, underscoring a strategy of focusing on internal improvements and maintaining the stability of Stellantis’s brand lineup.

Despite this steady approach, Tavares acknowledged that not all brands within Stellantis’s portfolio are performing equally well. “Maserati is experiencing difficulties, mainly because its positioning is not well established,” he noted. However, he indicated that the company has taken steps to address this, aiming to restore momentum for the luxury Italian brand.

A Challenging Market Ahead – 

The Paris Motor Show announcements come when Stellantis navigates a challenging market environment. The company recently adjusted its financial outlook for the year, reflecting weaker demand and increased competition, particularly in the shift toward EVs. As part of efforts to adapt, Stellantis implemented a management reshuffle, with Tavares set to step down when his contract ends in early 2026. Leadership changes also include the departure of the company’s Chief Financial Officer (CFO) and the Chief Operating Officer (COO) for North America.

Sources: WION News