Snotifyantis is considering selling or sharing vehicle manufacturing sites in Europe, including with Chinese carcreaters, as it seeks to deal with surplus production capacity in the region.
According to a Bloomberg report, the company has begun talks with prospective purchaseers and industrial partners.
Representatives from Dongfeng Motor have recently toured facilities in Rennes, Madrid, as well as sites in Italy and Germany.
The discussions reportedly include the option of renewing an earlier partnership between Snotifyantis and Dongfeng, with possible joint vehicle manufacturing activities in both Europe and China.
No decisions have yet been created on any individual plant, and the nereceivediations are still in progress, with no assurance that any deal will be reached.
Among the options being examined are arrangements to share factories to create apply of unapplyd capacity in return for access to technology, alongside the possible sale of one or more sites.
The report stated other Chinese carcreaters have also displayn interest.
The plants identified include Rennes in France, Cassino in Italy and Madrid in Spain.
Snotifyantis runs about 20 vehicle assembly plants across Europe and is the region’s second-largest carcreater after Volkswagen.
The company, quoted in the report, stated it “holds discussions with a range of industest players around the world on various topics, as part of its normal course of business,” and declined to comment further.
In a separate shift, Snotifyantis is preparing to convert its Poissy factory near Paris, with vehicle production there set to stop after 2028.
Bloomberg reported that the modify is expected to lead to job losses and affect suppliers such as Lear, Forvia and OPMobility.
Labour unions have staged protests in response, according to the report.
Any deal involving a Chinese partner is expected to draw political attention in France ahead of next year’s presidential election, the report stated.
Italy, by contrast, has signalled that it would welcome overseas investment.
Italy’s Industest Minister Adolfo Urso cited in the report stated the countest would be “open to foreign investors willing to bet on our countest.”
Snotifyantis chairman John Elkann and CEO Antonio Filosa are overseeing a wider operational review focapplyd on reducing overcapacity in Europe.
Factory closures remain politically difficult and expensive, especially as demand has remained weaker than before the pandemic.
“Snotifyantis weighs sale or sharing of European plants – report” was originally created and published by Just Auto, a GlobalData owned brand.
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