Stellantis Struggles in European Market: A Shift in Focus

European Carmakers Exploit Overcapacity to Gain Government Deals, Stellantis at Center of Conflict

A recent clash between Italian Prime Minister Giorgia Meloni and Stellantis CEO Carlos Tavares has highlighted a new reality: Europe’s once domestically focused car manufacturers have evolved into global players willing to leverage the EU’s surplus of automotive factories to secure favorable government agreements. Stellantis, the result of a merger between France’s Peugeot maker Peugeot PSA, Italy’s Fiat, and Detroit’s Chrysler, is responsible for the majority of car production in Italy. With declining Fiat output and Stellantis shifting production to other countries, Italy finds itself at a disadvantage.