Stellantis South America Looking to Align With Chinese BYD


In a move poised to reshape the landscape of the automotive industry in Northeast Brazil, Stellantis is reportedly in talks to establish a strategic alliance with Chinese electric car manufacturer Build Your Dreams (BYD) Auto. The proposed collaboration aims to fortify the regional automotive sector, foster economic growth, and propel sustainable mobility initiatives in the country. While the partnership is yet to be officially confirmed, insiders suggest that this potential synergy could usher in a new era of electrification, driven by BYD’s expertise in EVs.

Antonio Filosa, President of Stellantis in South America, revealed in an interview with Valor Econômico newspaper that the corporation is actively considering a strategic partnership with BYD. This move aligns with Stellantis’ strategic goal to attract more auto parts manufacturers to Northeast Brazil. The collaboration is set to build upon BYD’s recent announcement of establishing a factory in Camaçari, Bahia. This factory acquisition, taking over from Ford, presents a prime opportunity for Stellantis to leverage BYD’s electric vehicle proficiency.

Stellantis has been operating a production facility in Goiana (PE) since 2015, witnessing a notable expansion in its supplier base. The number of suppliers in Pernambuco has burgeoned from 7 to 38, with projections pointing towards 50 in the immediate future and a target of 100 within the next five years. This supplier network growth is emblematic of Stellantis’ commitment to fostering local economic development.

The search for new collaborators has led Stellantis to engage with a former Ford supplier based in Bahia. Talks are underway to integrate this supplier into Stellantis’ supply chain, furthering the corporation’s regional presence. If the proposed partnership with BYD comes to fruition, it is expected to not only enhance the Northeast Brazilian automotive sector but also elevate the economic prospects of the region as a whole.

BYD, renowned for its prowess in electric vehicle manufacturing, offers Stellantis a chance to expedite the electrification process of their vehicles produced in Pernambuco. The collaboration could prove transformative, enabling Stellantis to tap into BYD’s accumulated knowledge in electric technology and implement advanced electrification strategies across their range of vehicles, which includes brands like  Fiat, Jeep®, and Ram.

Beyond economic synergies, the potential partnership underscores the companies’ shared commitment to sustainable mobility solutions. With electrification being a linchpin of sustainable transportation, the collaboration between Stellantis and BYD aligns with global efforts to transition towards greener automotive technologies.

While the details of this promising partnership are still shrouded in confidentiality and have yet to receive official validation, industry observers are keenly awaiting forthcoming announcements that may shed light on this prospective alliance. The potential ramifications of this partnership are particularly significant for Fiat and Jeep, which serve as the flagbearers of the Stellantis automotive conglomerate in Latin America.