Stellantis NV is exploring strategic partnerships with Chinese automakers to inject capital into its struggling European operations, according to sources familiar with the matter. The Italian-American automaker would allow Chinese rivals to invest in its European business while Stellantis focuses its own investments on the Americas. This marks a significant shift in strategy for the company.

Europe has become a challenging market for Stellantis, with the company facing intense competition from both traditional rivals and new electric vehicle entrants. The region's economic pressures and stricter emissions regulations have weighed on profitability. By bringing in Chinese partners, Stellantis aims to strengthen its financial position while maintaining control over its European operations.

This potential deal structure represents a pragmatic approach to addressing Europe's competitive pressures. Rather than committing its own capital to a difficult market, Stellantis would leverage Chinese automakers' interest in expanding their European presence. The arrangement could provide Stellantis with much-needed financial flexibility while giving Chinese partners access to established European distribution networks and manufacturing capabilities.