European Automakers Sell Factories to Chinese Rivals Amid Market Shifts

European Automakers Shift to Chinese Partnerships

Stellantis may sell factories in France, Spain, Germany, and Italy to Chinese companies, joining other legacy automakers like Nissan, Ford, and Volkswagen in exploring similar deals. The move underscores a broader trend of European manufacturers seeking alliances with Chinese rivals to sustain operations.

Stellantis Expands Leapmotor Collaboration in Spain

Stellantis has confirmed that several vehicles from Leapmotor, its Chinese joint venture partner, will be produced at its plant in Villaverde, Madrid. The automaker also plans to transfer ownership of the plant to the Spanish subsidiary of the Leapmotor joint venture, deepening production ties.

Additionally, Bloomberg reports that Stellantis is considering selling plants in France, Germany, and Italy to China’s Dongfeng, a long-standing partner of the automaker. These developments follow Stellantis’ decision to cut 650 Opel engineers in Germany while handing its next EV project to China.

Nissan, Ford, and VW Follow Suit

Chery’s Acquisition of Nissan’s Barcelona Plant

In 2023, Chery purchased a former Nissan plant in Barcelona, Spain, acquiring the capacity to build up to 200,000 vehicles annually. Nissan is now reportedly considering selling its Sunderland, UK, plant to either Chery or Dongfeng.

Ford Sells Valencia Plant to Geely

Ford will sell an assembly line at its plant in Valencia, Spain, to China’s Geely. The site will reportedly produce a multi-energy vehicle using Geely’s Global Intelligent New Energy Architecture, offering hybrid, plug-in hybrid, and electric powertrains.

Volkswagen Explores Deeper Ties with China

Volkswagen is evaluating ways to integrate its Chinese partners into its European operations, potentially manufacturing or importing newer models from China. While such collaborations may help avoid plant closures, industry expert Bernard Jullien warns of risks.

“For manufacturers, suppliers, employees, and local officials, it is tempting to prefer selling to a Chinese player rather than disappearing. But this amounts to giving a leg up to a formidable competitor right here in the heart of Europe by providing a powerful accelerator for its penetration of our markets.”

— Bernard Jullien, Automotive Industry Specialist

Industry Implications

The trend reflects mounting pressures on European automakers, including shifting consumer demand, regulatory challenges, and competition from Chinese brands. While partnerships may offer short-term stability, they also raise concerns about long-term competitiveness and market dominance.