Stellantis CEO Antonio Filosa has indicated that the automotive giant sees potential opportunities for Chinese-branded vehicles in North American markets, specifically mentioning Mexico and potentially Canada, while explicitly ruling out the United States for such ventures. For the U.S. market, Filosa stated that Stellantis is exploring collaborations with non-Chinese brands, citing the company's recent announcement to investigate potential partnerships with Jaguar Land Rover.
During an investor day event held at Stellantis' North American headquarters near Detroit, Filosa expressed his conviction that the company can broaden its existing partnerships within North America. The strategic aim is to optimize the utilization of current manufacturing facilities and to drive sales growth. One avenue for this expansion, according to Filosa, could involve the production of Chinese-branded vehicles in locations outside the U.S. Specifically, Filosa stated on Thursday that Stellantis "for sure" perceives opportunities in enhancing the production and sales of vehicles in collaboration with the Chinese automaker Zhejiang Leapmotor Technology Co., targeting Mexico and possibly Canada. "I believe that there is space in Mexico. … There is maybe space in Canada. We'll see," Filosa commented during a news conference. He was unequivocal, however, regarding the U.S. market, stating, "Now there is no space in the United States. We don't see that."
Established automotive manufacturers, including Stellantis with its significant operational footprint in the region, have voiced concerns regarding the potential entry of Chinese automakers into the North American market. Executives in the U.S. have expressed apprehension that such market entries could serve as a conduit to American consumers.
Amidst ongoing trade tensions with the United States, Canada has implemented a policy that permits the annual import of 49,000 Chinese-made electric vehicles for retail sale, subject to a tariff rate of 6.1%. A significant Stellantis facility located in Brampton, Ontario, a suburb of Toronto, remains a key asset. This plant ceased production of new vehicles following the conclusion of manufacturing for the Dodge Charger and Challenger models in December 2023.
Bloomberg News reported last month that Stellantis was engaged in discussions concerning options for manufacturing electric vehicles in Canada with Leapmotor, according to sources familiar with the matter. Filosa highlighted that Stellantis' ongoing collaborations with Leapmotor are continuously evolving, serving as a strategic mechanism for the company to augment its sales figures, gain valuable insights from its Chinese partner, and effectively distribute capital expenditures. Since 2023, Stellantis has held a 51% majority ownership in a joint venture with Leapmotor, which confers exclusive rights for the sale and manufacturing of their respective products outside of greater China.
Stellantis, which also holds the position of the largest shareholder in Leapmotor with a 21% stake, announced an enhanced partnership with the Chinese automaker earlier this week. This announcement coincided with the formation of a European joint venture with another Chinese automaker, Dongfeng. Regarding the U.S. market, Filosa reiterated his perspective on the potential for partnerships with non-Chinese brands, referencing the recent announcement about exploring collaborations with Jaguar Land Rover. "We see potential to partner in [the] U.S. with other projects," he commented during the media briefing. "JLR, it is a partnership that can work very well for both parties because you see that the profile of what we industrialized, build, is not that different … so there is some synergy in the product conception that we can share with JLR."
