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Stellantis Moves Some EV Production Out of China Due to EU Tariffs

By David Sachs


Stellantis, the carmaker behind brands like Jeep and Fiat, decided to shift production of some electric vehicles away from China due to upcoming European Union tariffs on Chinese-made EVs.

The company shifted its production plans for electric vehicles made with Chinese joint-venture partner Leapmotor because of higher European import duties, Stellantis Chief Executive Carlos Tavares said Thursday, according to a FactSet transcript of the company's investor meeting.

The company adjusted its assembly locations based on tariff costs, Tavares said. He said the company created cost thresholds that dictate production location. In May, Stellantis announced plans for Leapmotor sales and operations in Europe.

The new tariffs, scheduled to start on July 6, are a result of an EU investigation into potential unfair subsidies for Chinese EV makers. The extra duties will reach as high as 38% but some companies will receive lower tariffs based on the outcome of the probe.

Analysts say Stellantis, whose sales are concentrated in the US and Europe, will be hurt less by the tariffs--and a potential trade war escalation--than German carmakers that rely more on the Chinese market.

Stellantis didn't immediately respond to a request for comment.


Write to David Sachs at


(END) Dow Jones Newswires

June 14, 2024 03:27 ET (07:27 GMT)

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