Stellantis To Shift Some EV Production on China Tariff Concerns [Video]

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%. 

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 …