Car industry Stellantis boss does not rule out plant closures
In the face of competition from China, the head of Opel parent company Stellantis, Carlos Tavares, fears overcapacity in the European car industry. This could result in plant closures.
14.10.2024, 12:47
SDA
"Nothing can be ruled out," Tavares told the French newspaper "Les Échos". If the Chinese achieve a market share of ten percent in Europe at the end of their offensive, this would mean a volume of 1.5 million cars. "That corresponds to seven assembly plants. The European manufacturers would then either have to close them down or hand them over to the Chinese."
Regarding the EU's planned punitive tariffs on Chinese electric cars, the Stellantis boss said that China would circumvent these barriers by investing in the construction of factories in Europe. "If that happens, we should not be surprised if sites have to be closed in order to reduce the increased overcapacity."
In September, the parent company of car manufacturers such as Peugeot, Citroen, Opel, Fiat, Chrysler and Jeep lowered its profit expectations for this year due to problems on the North American market and the weak industry situation. Group CEO Tavares' contract runs until the beginning of 2026, after which the 66-year-old will retire. The Group is already looking for a successor.
