Stellantis laid out a sweeping €60 billion strategy this week that marks a clear shift under new CEO Antonio Filosa. 

Unlike former CEO Carlos Tavares, whose strategy relied heavily on internal execution and aggressive cost cutting, Filosa is leaning into partnerships to reduce costs and accelerate product development timelines. 

The group plans to launch 60 new models by 2030 spanning  combustion engine, hybrid and electric vehicles, while also simplifying platforms and trying to monetise its chronic problem of excess factory capacity. 

The list of partners says a lot about where the industry is heading.  

On manufacturing, Stellantis is expanding ties with Chinese automakers Leapmotor and Dongfeng, while also working with Tata Motors and Jaguar Land Rover in the United States. On technology, it is relying on companies such as Qualcomm, Applied Intuition and British self-driving startup Wayve. 

The message from Filosa is clear: legacy automakers can no longer afford to do everything themselves.  

That may end up being the most important takeaway for others as well.  

Volkswagen CEO assured workers that there are "currently no plans or discussions with Chinese manufacturers.” - REUTERS/Kai Pfaffenbach

Volkswagen CEO Oliver Blume used a workers’ assembly this week to publicly deny reports that the German automaker was in talks with Chinese manufacturers about using excess factory capacity in Europe. You can read more here. 

The fact that he had to address the issue at all says a great deal about the anxiety inside Europe’s largest automaker. Volkswagen is grappling with a painful reality confronting much of Europe’s auto industry: too many factories, weak demand and rising Chinese competition. 

Blume acknowledged that Volkswagen still has excess capacity in Europe and Germany and that the issue must be addressed to remain competitive. But he also tried to reassure workers that there were “currently no plans or discussions with Chinese manufacturers.” 

But the economic pressure is only growing. 

Stellantis has openly embraced partnerships with Chinese firms to help fill unused capacity. Volkswagen, for now, is trying to buy itself time. 

China's restriction on supply of rare earths to Japan matters enormously for the auto industry - REUTERS/Dado Ruvic/Illustration/File Photo

China has halted exports of several heavy rare earth materials to Japan since January, according to Chinese customs data and industry sources, reviving memories of the geopolitical standoff between the two countries in 2010. 

The timing is striking as it coincides with a broader deterioration in relations between Beijing and Tokyo over Taiwan and mirrors China’s restrictions with the United States during the recent trade tensions.  

The move matters enormously for the auto industry. Japan remains the world’s largest producer of rare earth magnets outside China, but it is still heavily dependent on Chinese supply for key materials such as dysprosium and terbium used in electric motors, aerospace systems and advanced electronics. 

For automakers already struggling with geopolitical fragmentation, tariff uncertainty and supply-chain shocks, rare earths are becoming another reminder that the transition to EVs is deeply tied to resource security, and China. 

Japanese auto exports to the Middle East plunged more than 90% in April as the Iran conflict disrupted shipping routes through the Strait of Hormuz, highlighting how exposed global automakers remain to geopolitical shocks. This is a key region for the likes of Toyota and Nissan.  

India’s Maruti Suzuki has introduced some austerity measures to curb the use of petrol as fuel prices remain elevated. Employees have been advised to work from home on some days, if possible, carpool to save fuel and cut down on non-essential air travel. 

SpaceX unveiled plans for what could become the first trillion-dollar U.S. IPO, underscoring the growing financial and technological overlap between Elon Musk’s businesses, including Tesla.