- Carlos Tavares predicts only five or six global carmakers will survive.
- Ex-Stellantis CEO warns Chinese automakers could rescue Europe.
- He claims EU’s 2035 combustion ban has hurt Europe’s auto industry.
Chinese automakers are no longer content with regional dominance, as they’re eyeing the world stage. And if you ask Carlos Tavares, the former head of Stellantis, they might actually pull it off.
The outspoken executive believes Chinese manufacturers could end up rescuing Europe’s car industry from its slow decline. Names like BYD and Geely, he says, may not just survive the global shake-up but emerge as the last few standing.
Read: The Guy Who Broke Stellantis Now Thinks It Might Break Up
Since stepping down from Stellantis nearly a year ago, Tavares has spent his time writing a memoir and touring the press circuit to promote it, offering a steady stream of predictions about where the auto industry is headed.
Will China Save Europe’s Factories?
He’s claimed that Stellantis itself might split apart and even floated the idea that Tesla could exit the car business entirely. Now he’s suggesting that within the next 10 to 15 years, Chinese brands could step in to save Europe’s automotive sector, though not without cost.
“There are lots of nice windows being opened up for the Chinese,” he told The Financial Times. “The day a western carmaker is in severe difficulty, with factories on the verge of closing and demonstrations in the street, a Chinese carmaker will come and say ‘I’ll take it and keep the jobs’, and they’ll be considered saviors.”
Tavares has experience dealing with Chinese car firms. He orchestrated Stellantis buying a 20 percent share of Leapmotor to help launch it into international markets. He also acknowledges that Leapmotor likely entered the deal because “they want to swallow us [Stellantis] some day.”
Trouble in Europe’s Auto Core
The former Stellantis boss hasn’t softened his criticism of Europe’s automotive policy. He argues that the European Union’s ban on new internal combustion cars by 2035 has forced local automakers into massive, and potentially wasted, investment.
According to Tavares, European car companies have poured more than €100 billion into electrification since the rule was introduced. He now predicts the EU will backtrack on the plan entirely.
More: Carlos Tavares Thinks Tesla Might Not Exist In 10 Years
“Who is holding the EU to account for the €100bn of investments that won’t be used? No one,” he said.
The global car industry is in such a dramatic state of flux that Tavares thinks most current brands won’t survive. In fact, he predicts that as few as five or six carmakers will survive.
These could include Toyota, Hyundai, BYD, and likely another Chinese firm, possibly Geely. In this scenario, the rest of the brands would likely be gobbled up by these conglomerates.
Interestingly, Tavares doesn’t include Stellantis among the survivors. Whether that’s professional detachment or a parting shot from a man who knows too much is anyone’s guess.
