Including Stakes in Maserati and Other Brands! Automotive Giant Stellantis Reportedly Seeking Investment from Xiaomi and XPeng Motors

Falling into trouble, automotive giant Stellantis is reportedly in talks with Chinese automakers, seeking their investment in its European operations to gain funding, technology, and production capacity support in the European market, while focusing its investment priorities on the Americas.

On March 12, Bloomberg reported that Stellantis executives have held separate discussions with Xiaomi and Xpeng Motors to explore various restructuring options for its European business, including the possibility of Chinese automakers acquiring stakes in Maserati or other brands under Stellantis, as well as opening European manufacturing capacity to Chinese partners.

The report noted that sources familiar with the matter said no definitive deal has been reached yet. Following the news, Xpeng’s U.S. ADRs rose by 5.5%, Xiaomi’s stock increased by 2%, and Stellantis’s stock also narrowed its decline.

Analysts point out that this negotiation reflects the divergent development paths of Stellantis’s North American and European segments, and marks a deep strategic restructuring for the auto giant formed by the 2021 merger of Fiat Chrysler and PSA Group.

Stellantis Europe Under Pressure, Seeking Chinese Capital “Blood Transfusion”

Stellantis’s European operations have long faced challenges such as overcapacity, fierce competition, and high costs of electrification.

Brands like Fiat, Opel, and Peugeot are under pressure in Europe, battling traditional rivals like Volkswagen and Renault, while also facing ongoing encroachment from Chinese brands like BYD—currently, one in ten cars sold in Europe is from a Chinese brand.

Bloomberg recently reported that, citing sources, Stellantis management believes that higher future returns will come from the U.S. market and remains cautious about making large-scale investments in Europe.

Meanwhile, bringing Chinese automakers into European operations could provide Stellantis with advanced electric vehicle technology and software capabilities, while Chinese companies could gain better access to the European market.

In addition to talks with Xiaomi and Xpeng, Stellantis is advancing cooperation with Chinese automakers on multiple fronts.

According to previous Bloomberg reports, Stellantis is considering deepening collaboration with its existing Chinese partner, Zhejiang Leap Motor, exploring synergies in affordable electric vehicles and software technology for the European market.

In the U.S., Stellantis is pushing forward with a roughly $13 billion new vehicle investment plan, which has already benefited brands like Jeep and Ram trucks, with demand beginning to rebound.

Some insiders suggest that this restructuring could ultimately lead to further separation of Stellantis’s North American and European segments, though a full spin-off is not currently a focus.

Stellantis issued a strong statement, asserting, “Any reports suggesting the company is considering a spinoff are unfounded, and any contrary claims are pure fabrication.”

Massive Write-Downs and Urgent Strategic Shift

The reports indicate that the background for these negotiations is Stellantis’s recent record-breaking impairment and write-downs totaling €22.2 billion (about $25.7 billion), mostly related to the company’s decision to scale back its electric vehicle strategy.

This strategic reversal—including canceling battery joint ventures and several future models—wiped out roughly a quarter of the company’s market value in a single day.

Since taking over as CEO last year, Antonio Filosa has been focused on stabilizing operations. He is expected to reveal more details about the company’s future plans at the investor day scheduled for May 21 in the United States.

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