Stellantis, owner of brands such as Fiat, Jeep, and Citro\u00ebn, said Brazil should consider adopting mechanisms to offset the competitive advantage of Chinese automakers, arguing that current conditions threaten the long-term sustainability of the local industry.<\/p>\n
\u201cThere is a competitive gap with Chinese brands in the market that needs to be addressed,\u201d said Antonio Filosa, the company\u2019s regional president, at a press conference in S\u00e3o Paulo. \u201cAn equalization mechanism for this type of competition should be designed and implemented.\u201d<\/p>\n
According to Filosa, China\u2019s structural competitiveness is the result of two decades of coordinated industrial policy and investment, creating a highly efficient production ecosystem. He also pointed to excess industrial capacity in China, which is increasingly being directed to external markets.<\/p>\n
\u201cWith the U.S. market largely closed and Europe debating the issue, South America\u2014and Brazil in particular\u2014has become a primary destination,\u201d he said.<\/p>\n
Filosa said it is still difficult to assess the full impact of current tariffs, given the large volume of vehicles imported in previous months that are still in transit or being distributed.<\/p>\n
\u201cWhat needs to be done is to technically measure this gap and define how to translate it into an equalization mechanism, whether through existing global tools or a specific solution\u2014not just tariffs,\u201d he said.<\/p>\n
The company suggests that the Brazilian government and the National Association of Vehicle Manufacturers (Anfavea) conduct a technical study to quantify the gap and design an appropriate policy response.<\/p>\n
Filosa cited the United States as an example, noting that the country imposed tariffs of up to 100% on Chinese-made electric vehicles and adjusted CO\u2082 requirements to avoid an unintended contraction in the domestic market.<\/p>\n
\u201cIn our view, the U.S. administration carried out a technical assessment to understand this competitiveness gap and determine how to protect the sustainability of its auto industry,\u201d he said.<\/p>\n
In Brazil, however, Filosa described operations as stable and growing, in contrast with challenges faced by the group in other regions.<\/p>\n
\u201cSouth America is performing very well. It is not a source of concern\u2014on the contrary, it represents an opportunity,\u201d he said.<\/p>\n
Despite strong sales performance, he noted that profitability is under pressure due to high costs and logistical bottlenecks, which make local production more expensive than in other markets.<\/p>\n
\u201cThe weight of logistics costs in the structure of a Brazilian-made vehicle is higher than in Europe or North America,\u201d he said.<\/p>\n
Leapmotor partnership<\/strong><\/p>\n Stellantis said it plans to begin production of vehicles from Chinese brand Leapmotor in Brazil in the first quarter of 2027, with two models to be manufactured at its Goiana plant in the state of Pernambuco.<\/p>\n The partnership makes Brazil the first country outside China to produce Leapmotor vehicles. The models\u2014B10 and C10\u2014will use Stellantis technology that combines an internal combustion engine to power an electric drivetrain.<\/p>\n \u201cWe are setting up the production line and training personnel. It is a strong technical partnership,\u201d Filosa said, adding that full operations should be in place by early next year.<\/p>\n Founded in 2015 in Hangzhou, Leapmotor produces electric and hybrid vehicles. Stellantis acquired a roughly 20% stake in the company in 2023 and established a joint venture to expand the brand internationally.<\/p>\n Asked about the apparent contradiction between advocating protection measures and partnering with a Chinese automaker, Filosa said the company\u2019s strategy differs from that of pure exporters.<\/p>\n \u201cOur approach is different. We localize production and a large share of components, including the engine,\u201d he said.<\/p>\n Middle East<\/strong><\/p>\n Stellantis said it is monitoring the conflict in the Middle East involving the United States, Israel, and Iran, and warned that rising inflation and shifting demand could affect operations.<\/p>\n \u201cThere is significant market volatility in a complex geopolitical environment,\u201d Filosa said.<\/p>\n Operations in the Gulf region\u2014including the United Arab Emirates and Saudi Arabia\u2014are already facing disruptions, with some decline in sales volumes expected.<\/p>\n \u201cWe are already anticipating some volume losses, which are manageable for now. But much depends on how long the geopolitical crisis lasts,\u201d he said.<\/p>\n Filosa added that inflation remains a key risk, depending on the persistence of global volatility.<\/p>\n \u201cVolatility and inflation are real risks ahead,\u201d he said.<\/p>\n