Stellantis is considering selling or sharing vehicle manufacturing sites in Europe, including with Chinese carmakers, as it seeks to deal with surplus production capacity in the region.

According to a Bloomberg report, the company has begun talks with prospective buyers and industrial partners.

Representatives from Dongfeng Motor have recently toured facilities in Rennes, Madrid, as well as sites in Italy and Germany.

The discussions reportedly include the option of renewing an earlier partnership between Stellantis and Dongfeng, with possible joint vehicle manufacturing activities in both Europe and China.

No decisions have yet been made on any individual plant, and the negotiations are still in progress, with no assurance that any deal will be reached.

Among the options being examined are arrangements to share factories to make use of unused capacity in return for access to technology, alongside the possible sale of one or more sites.

The report said other Chinese carmakers have also shown interest.

The plants identified include Rennes in France, Cassino in Italy and Madrid in Spain.

Stellantis runs about 20 vehicle assembly plants across Europe and is the region’s second-largest carmaker after Volkswagen.

The company, quoted in the report, said it “holds discussions with a range of industry players around the world on various topics, as part of its normal course of business,” and declined to comment further.

In a separate move, Stellantis is preparing to convert its Poissy factory near Paris, with vehicle production there set to stop after 2028.

Bloomberg reported that the change is expected to lead to job losses and affect suppliers such as Lear, Forvia and OPMobility.

Labour unions have staged protests in response, according to the report.

Any deal involving a Chinese partner is expected to draw political attention in France ahead of next year’s presidential election, the report said.

Italy, by contrast, has signalled that it would welcome overseas investment.

Italy’s Industry Minister Adolfo Urso cited in the report said the country would be “open to foreign investors willing to bet on our country.”

Stellantis chairman John Elkann and CEO Antonio Filosa are overseeing a wider operational review focused on reducing overcapacity in Europe.

Factory closures remain politically difficult and expensive, especially as demand has remained weaker than before the pandemic.