Stellantis N.V. is in formal discussions with Chinese automakers Xiaomi and Xpeng about investment deals that would bring fresh capital into its European operations. The talks are part of a broader strategy to address the group’s recent financial struggles and to gain access to advanced electric‑vehicle technology and market expertise in China.
Stellantis reported a €22.3 billion net loss for fiscal 2025, with total net revenues of €153.5 billion and European net revenues of €57.8 billion—down 2 % year‑over‑year. The company’s European division has been hit by high restructuring charges and a shift away from an all‑electric focus, prompting the search for new funding sources.
The proposed investment could take the form of equity stakes, joint ventures, or technology licensing agreements, and may even involve a stake in the luxury marque Maserati. Such a partnership would provide the cash needed to offset the €22.3 billion loss while giving Stellantis access to Chinese EV platforms and manufacturing know‑how, potentially accelerating its return to profitability in Europe.
CEO Antonio Filosa said the 2025 results reflected “the cost of over‑estimating the pace of the energy transition and the need to reset our business around customers’ freedom to choose from electric, hybrid, and internal‑combustion technologies.” He added that the second half of the year showed early signs of progress, underscoring the urgency of securing new capital and technology to support the reset.
Investors noted the announcement as a positive development, citing the potential capital infusion and the company’s €5 billion hybrid bond sale as supportive signals. However, a sell‑side downgrade and ongoing investor litigation tempered enthusiasm, indicating that the market remains cautious about the timing and scale of the partnership.
The partnership could provide much‑needed liquidity and access to Chinese EV technology, potentially improving Stellantis’s competitiveness in Europe. Yet the company still faces significant losses and a strategic reset, meaning the outcome of these talks will be closely watched for its impact on future earnings and capital structure.
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