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Stellantis CEO Tavares: Plant Closures Are Not Taboo
The CEO of Opel's parent company Stellantis, Carlos Tavares, does not rule out factory closures in light of the sales crisis in the automotive industry and competition from China. "One must not rule anything out," Tavares told the French newspaper "Les Échos". If the Chinese, at the end of their offensive, reach a market share of ten percent in Europe, it would mean a volume of 1.5 million cars. "That corresponds to seven assembly plants. European manufacturers would then have to either close them or hand them over to the Chinese." Regarding the EU's planned punitive tariffs on Chinese electric cars, the Stellantis CEO said China would circumvent these barriers by investing in the construction of factories in Europe.
"When this has happened, one should not be surprised if locations have to be closed to reduce the increased overcapacity."
In September, the parent company of automakers such as Peugeot, Citroen, Opel, Fiat, Chrysler, and Jeep lowered its profit expectations for this year due to issues in the North American market and the weak industry situation. The contract of CEO Tavares runs until early 2026, after which the now 66-year-old will retire. The company is already searching for a successor.
At VW, there have also been open debates about plant closures recently. Even more than at Stellantis, overcapacities are a pressing issue here - and the electric cars are not selling nearly as well as hoped. The Audi plant in Brussels is already up for discussion.
Translated automatically from German.
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