Stellantis To Shift Some EV Production on China Tariff Concerns
Key Takeaways
- Stellantis said it is looking to move some electric vehicle (EV) production to Europe from China to avoid new tariffs.
- The move came as EU regulators threaten to slap new duties on Chinese-made EVs, citing Beijing’s subsidies of its domestic industry.
- Stellantis CEO Carlos Tavares called the company’s strategy to deal with the challenge from China’s EV industry as “asset-light.”
Stellantis (STLA) shares fell Friday after the automaker announced it would be moving some electric vehicle (EV) production out of China to Europe following threats by European regulators of big tariffs on Chinese-made EV imports.
Reports from the company’s Investor Day said Chief Executive Officer (CEO) Carlos Tavares explained that Stellantis has changed its EV production plans with Chinese joint-venture partner Leapmotor. Tavares explained that it adjusted its assembly sites based on higher duties.
On Wednesday, the European Commission, the regulatory arm of the European Union (EU), warned that new tariffs on Chinese-made EVs would begin July 4 unless talks with Beijing resolved concerns that China’s EV subsidies gave its manufacturers an advantage over EU carmakers. The Commission noted that the duties could be as much as 38.1%.
Stellantis to Have ‘Asset-Light’ China Strategy
Tavares added that Stellantis would have an “asset-light” strategy to keep on the offensive and protect it from China’s EV push. He argued that his company’s China strategy is more robust than its competitors’.
Shares of Stellantis dropped 5% as of 11:07 a.m. ET Friday to $20.02, their lowest level this year.
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