Chinese automakers on the global stage
Chinese automakers are no longer satisfied with regional dominance and are actively entering the global market. Former Stellantis CEO Carlos Tavares believes they can succeed in this.
Forecasts for the future of the auto industry
He predicts that Chinese manufacturers such as BYD and Geely may not only survive in the context of global consolidation but also become among the few remaining in the market. Tavares even suggests that they are capable of saving the European automotive industry from gradual decline.
Tavares’ views on the situation in Europe
After leaving Stellantis almost a year ago, Tavares has been writing his memoirs and actively expressing his thoughts on the future of the automotive industry. He suggested that Stellantis could disintegrate, and Tesla might leave the car business altogether. Furthermore, he stated that Chinese brands could save the European auto industry over the next 10-15 years, but this would not happen without consequences.
There are many great opportunities for the Chinese. When a Western automaker finds itself in a difficult situation, with factories on the verge of closure and demonstrations in the streets, a Chinese manufacturer will come and say: ‘I will take this and save the jobs,’ and they will be considered saviors.
Cooperation with Chinese companies
Tavares has experience working with Chinese automakers. He arranged for Stellantis to purchase a 20% stake in Leapmotor to help it enter international markets. He also acknowledged that Leapmotor likely made the deal because “they want to someday swallow Stellantis.”
Criticism of EU policy
The former head of Stellantis continues to criticize Europe’s automotive policy. He claims that the European Union’s ban on new internal combustion engine cars by 2035 has forced local manufacturers to make massive investments that may prove futile.
According to Tavares, European automotive companies have invested over 100 billion euros in electrification following the introduction of this rule. He predicts that the EU will completely abandon this plan.
Who will hold the EU accountable for the 100 billion euros in investments that will not be used? No one.
The future of the global auto industry
The global automotive industry is undergoing such dramatic changes that Tavares believes most current brands will not survive. He predicts that only five or six automakers will remain, among which could be Toyota, Hyundai, BYD, and probably another Chinese company, perhaps Geely. The remaining brands will most likely be swallowed up by these conglomerates.
Stellantis’s place in the future
Interestingly, Tavares does not include Stellantis among the survivors. Whether this is professional detachment or a final shot from someone who knows too much remains a matter of speculation.
Tavares’s forecasts highlight how rapidly the automotive industry is changing, especially under the pressure of electrification and Chinese expansion. His words also point to potential consequences for jobs and industry in Europe, where traditional manufacturers may face serious challenges. This could lead to a reassessment of strategies at both the national and corporate levels.