European automotive giants Volkswagen AG (OTC:VWAGY), Renault SA (OTC:RNSDF), and Stellantis NV (NYSE:STLA) are reportedly considering an unprecedented partnership to tackle the growing threat from Chinese EV makers and Tesla.
What Happened: As reported by Bloomberg on Monday, the automakers are exploring the idea of joining forces to produce affordable EVs, a move that would require them to set aside their historical rivalry.
The companies are facing increased competition from Chinese EV firms and Tesla, which has exposed their vulnerabilities. This has prompted a sense of urgency among European carmakers, who realize that the traditional approach is no longer viable.
Stellantis CEO Carlos Tavares highlighted the need for adaptation, warning of a potential “bloodbath” in the European auto industry if companies fail to keep up with Chinese competition.
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The European car industry is also grappling with a slowdown in EV adoption, caused by factors such as the reduction of government incentives, rising repair costs, and consumer frustration over climate policies ...