by European auto giants ready to transfer factories to Chinese manufacturers
Stellantis may sell several of its European factories to Chinese companies, and this is not an isolated case. More and more traditional automakers, which have a significant industrial base in Europe, are considering the same move to provide Chinese brands with easy market access.
In addition to announcing plans that the next Opel electric car will use the Leapmotor platform, Stellantis reported at the end of last week that several Leapmotor models will be produced at its plant in Villaverde, Madrid. Moreover, the company plans to transfer ownership of this plant to the Spanish subsidiary of its joint venture with Leapmotor.
Sale of factories in France, Germany and Italy
Production cooperation will not stop there. According to Bloomberg, Stellantis is also considering the possibility of selling factories it operates in France, Germany and Italy to the Chinese company Dongfeng, a long-time partner of the automaker.
Several other brands in Europe are already considering similar steps or have already done so. For example, Chery acquired the former Nissan plant in Barcelona, Spain, back in 2023, allowing it to produce up to 200,000 vehicles annually. In addition, Nissan is likely considering selling its plant in Sunderland, UK, to Chery or Dongfeng.
Ford and VW follow suit
It was also recently reported that Ford will sell the assembly line at its plant in Valencia, Spain, to China’s Geely. The company plans to produce a multi-energy vehicle at this site, using its global intelligent new energy architecture. Such a model would likely be offered with hybrid, plug-in hybrid and electric powertrains.
Even Volkswagen is considering how to integrate its Chinese partners into European operations, potentially producing or importing some of its newer models from China to the region. Although cooperation with Chinese companies is a better option than closing factories, automotive industry expert Bernard Jullien notes that it carries risks.
“For manufacturers, suppliers, workers and local officials, it is tempting to prefer selling to a Chinese player rather than disappearing,” he said. “But this means helping a formidable competitor right in the heart of Europe, providing a powerful accelerator for penetration into our markets.”
This trend indicates a profound transformation of the European automotive market. Traditional manufacturers, who have dominated the region for decades, are now forced to seek partnerships with Chinese companies to survive in the face of fierce competition and the transition to electric vehicles. Selling factories may be a quick way to raise capital and preserve jobs, but it also opens the door for Chinese brands, which gain a ready-made production base and access to the European market without having to build new facilities from scratch. This could lead to even more competition for local manufacturers in the future, as Chinese companies strengthen their positions directly in Europe.
