Stellantis Faces Potential Factory Closures Amid Chinese Competition

CEO Carlos Tavares warns of possible plant shutdowns as Stellantis grapples with market challenges and strategic shifts.

Carlos Tavares, CEO of Stellantis, has indicated that up to seven factories may close due to increased competition from Chinese automakers.
Stellantis is experiencing profitability issues in North America and sluggish auto sales in Europe, prompting a reevaluation of its operations.
The company has revised its profit targets downward for the year and recently made significant changes in its top management.
Despite challenges, Stellantis has formed a new partnership with Chinese electric vehicle manufacturer Leapmotor to expand its product offerings.
Tavares plans to retire at the end of his contract in early 2026, and Stellantis is currently searching for his successor.