Carlos Tavares States That Stellantis Might Be Completely Overwhelmed by Its Chinese Partner | Carscoops

      A former automotive executive forecasts that China will come to the aid of Europe's factories and cautions that only five global car manufacturers might endure the next decade.

      Carlos Tavares predicts that only five or six global carmakers will remain in the future. The ex-CEO of Stellantis warns that Chinese automakers may step in to support Europe. He argues that the EU's ban on combustion engines by 2035 has negatively impacted the continent's automotive sector.

      Chinese car manufacturers are no longer satisfied with just regional leadership; they are now setting their sights on the global market. According to Carlos Tavares, the former head of Stellantis, they may very well succeed.

      The bold executive believes that Chinese companies could ultimately save Europe's automotive industry from its gradual downturn. Firms like BYD and Geely, he suggests, might not only survive global upheavals but could also be among the few that remain standing.

      Since leaving Stellantis nearly a year ago, Tavares has been busy writing a memoir and promoting it to the media, offering a consistent stream of insights regarding the future of the auto industry.

      Will China rescue Europe's factories?

      He has claimed that Stellantis itself could undergo significant changes and even speculated that Tesla might exit the automotive sector altogether. Now, he is proposing that in the next 10 to 15 years, Chinese brands might intervene to save Europe's automotive industry, albeit with a price.

      "There are many favorable opportunities arising for the Chinese," he stated in an interview with The Financial Times. "When a Western manufacturer finds itself in deep trouble, with plants on the brink of closure and protests occurring, a Chinese carmaker will step in and say, ‘I’ll take it and preserve the jobs,’ and they will be seen as heroes."

      Tavares has firsthand experience with Chinese car manufacturers. He facilitated Stellantis acquiring a 20% stake in Leapmotor to aid its entry into international markets. He also admits that Leapmotor likely engaged in the deal with ambitions of eventually overtaking Stellantis.

      Challenges in Europe's automotive sector

      The former Stellantis chief has not softened his stance on Europe's automotive policies. He contends that the EU's prohibition on new internal combustion vehicles by 2035 has compelled local manufacturers to make enormous, and perhaps futile, investments.

      According to Tavares, European carmakers have invested over €100 billion in electrification since the introduction of this regulation. He now anticipates that the EU will completely reverse its planned approach.

      “Who is holding the EU accountable for the €100 billion of investments that will go unused? No one,” he remarked.

      Tavares believes that the global automotive industry is undergoing such significant changes that most existing brands are unlikely to last. Indeed, he predicts that as few as five or six manufacturers may endure.

      Potential survivors could include Toyota, Hyundai, BYD, and possibly another Chinese company like Geely. In this scenario, the remaining brands could be absorbed by these larger conglomerates.

      Notably, Tavares does not mention Stellantis among the potential survivors. Whether this reflects impartial assessment or a parting jab from someone with extensive insider knowledge is uncertain.