Automotive at the crossroads between Chinese partnerships, structural cuts, and global markets

The automotive industry is undergoing a phase of profound transformation, driven by strategic alliances and production reshuffles. On one hand, Stellantis aims to preserve its industrial presence in Europe by leveraging synergies with Chinese partners to utilize around one million units of unused production capacity; on the other hand, the Volkswagen Group is planning a significant downsizing that will lead to the elimination of 75 models by 2035 and the closure of several plants to adapt to the electric transition and volume contraction. At the same time, China continues its expansion into international markets thanks to record export volumes, driven by the need to find foreign outlets in the face of fluctuating domestic demand. In this scenario, production localization strategies and EU tariffs seek to balance global competition, redefining the role of European plants and suppliers. For manufacturers in the old continent, the primary challenge remains balancing cost containment with investments in new technologies to maintain competitiveness in the long term. The real challenge, however, will be to understand who will lead this race with vision and courage rather than just agreements and downsizing. The question also remains open: between alliances with the Chinese and internal renewal, who will truly accelerate and who will instead stop halfway?