Stellantis may sell or share four European factories in bid to address overcapacity, Bloomberg reports

Stellantis Considers Sale or Partnership for Four European Factories to Tackle Overcapacity

Stellantis' Strategy to Address European Overcapacity

PARIS, April 23 (Reuters) - Stellantis NV has identified four factories in Europe it may sell or share as it tackles surplus manufacturing capacity, Bloomberg reported on Thursday, citing people familiar with the situation.

Potential Factories Involved

The carmaker has told the French and Italian governments its overcapacity in Europe amounts to four plants, which includes sites in Rennes, Madrid and central Italy, but no decision has been made on specific plants, Bloomberg reported.

Discussions with Partners and Buyers

The manufacturer has started talks with potential partners and buyers. Representatives from China's Dongfeng Motor Corp toured the Rennes and Madrid plants earlier this month, with the visit also including travel to Stellantis sites in Italy and Germany, but talks could still evolve, according to Bloomberg.

Official Statement from Stellantis

"As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics, always with the ultimate aim of providing customers with the best mobility choices. The Company does not comment on speculations," a Stellantis spokesperson said.

Recent Developments and Industry Context

Stellantis' overcapacity issues in Europe led the company to announce last week it will stop making new cars in its French plant in the Parisian suburb of Poissy.

Chinese Carmakers' Interest in European Production

Meanwhile, Chinese carmakers are looking for more production facilities in Europe. The chairman of Chery Automobile Co recently said at a Paris event he preferred to use existing production capacity rather than investing heavily in a new assembly plant.

(Reporting by Gilles Guillaume; Writing by Makini Brice; Editing by Nick Zieminski)