Volkswagen, Renault and Stellantis are thinking the unthinkable, exploring tie-ups with sworn competitors to make cheaper electric vehicles and fend off existential threats.
As Tesla and Chinese rivals expose competitive weaknesses at Europe¡¯s biggest mass-market carmakers, it¡¯s become clear that a sense of urgency is growing and a business-as-usual approach is a losing option.
There¡¯s a ¡°perfect recognition that in the future, the companies which are not fit to face the Chinese competition will put themselves in trouble,¡± Carlos Tavares, CEO of Stellantis ¡ª the company created from the 2021 merger of Italy¡¯s Fiat and France¡¯s PSA Group ¡ª said in an interview last week. He has previously said that Europe¡¯s auto industry faces a ¡°bloodbath¡± if it doesn¡¯t adapt.
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