Stellantis Group is exploring a deal with Chinese automakers to invest in the Fiat parent company's troubled European operations, according to people familiar with the matter. At the same time, Stellantis has shifted its investment focus to the American market.
According to people familiar with the matter, company executives have met with Xiaomi Group and Xpeng Motors to discuss various options to rectify Stellantis’ European business, which may involve stakes in Maserati or other brands. The people spoke on condition of anonymity because the discussions involved private negotiations. People familiar with the matter also said talks also involved acquiring car manufacturing capacity as the company seeks to expand in Europe.
"As part of the normal course of business, Stellantis engages in discussions with numerous industry players around the world on a variety of topics, with the ultimate goal always being to provide customers with the best mobility options," the automaker said in a statement. "The company does not comment on any speculation."
Media representatives for Xpeng Motors declined to comment. Xiaomi has not yet responded to a request for comment.
Stellantis shares pared earlier losses after the Bloomberg report was released. Xpeng ADR once rose 5.4%, Xiaomi ADR once rose 2.4%.
The discussions highlighted the differences in the trajectories of Stellantis' business in Europe and the United States. The Jeep parent company has initiated an investment of about $13 billion to refresh its product lineup.
The overhaul could eventually lead to a further separation of the company's U.S. and European operations, some people familiar with the matter said, although discussions are not focused on a full spin-off.
"Stellantis states in the clearest possible terms that it is not considering a spin-off plan," the company said. "Any statement to the contrary is pure fabrication."
People familiar with the matter said that months of negotiations with the company have involved the latter taking a stake in Stellantis’ European entity. But they also said there was no guarantee that any deal would eventually be reached.