Stellantis and Ford say that alliances—both with Chinese firms and traditional rivals—are vital for survival in a European market hurt by high costs and weak demand. At the FT’s Future of the Car Summit, Stellantis CEO Antonio Filosa warned that partnerships should not be limited to China, while Ford’s European head Jim Baumbick cited Chinese auto makers’ massive scale as a competitive edge today, recently.

Stellantis has deepened ties with China’s Leapmotor, taking a 21 % stake in 2023 and securing control of its Madrid plant for a 2028 model launch. The alliance will also co‑develop an electric SUV under the Opel brand, with shared parts purchases to cut costs. Ford is negotiating a partnership with Geely to revive its European passenger‑vehicle line.

These moves reflect a broader shift toward collaborative manufacturing to meet EU ‘Made in Europe’ targets and avoid tariffs on imported EVs. By leveraging Chinese scale and technology, Stellantis and Ford aim to boost production efficiency and recapture market share in a price‑sensitive region. The partnerships signal that Western automakers will increasingly depend on external partners to stay competitive.