Stellantis declares bankruptcy in China, with $1B in debts

Car prices, regulation, and profitability

• Some argue new car prices have “doubled” in 20 years, implying automakers should be very profitable; others counter that, adjusted for inflation and hedonic quality changes, the increase is far less dramatic.
• In Europe, stricter safety, emissions, recyclability, and ADAS rules are seen as making cars materially more expensive to build.
• There’s debate over whether rising prices are mainly regulation-driven or a deliberate move upmarket (more “pseudo-luxury” trims, bigger/heavier vehicles) combined with cost-cutting in quality.

Trade policy and Chinese competition

• Commenters note the US has effectively blocked Chinese cars with very high tariffs; the EU uses more moderate, targeted tariffs to offset calculated state aid rather than ban them outright.
• Some see Chinese pricing as state-subsidized dumping to kill foreign industry; others point to teardown analyses and intense intra‑China competition as evidence of real cost advantages via automation and vertical integration.
• Chinese EVs are increasingly visible in Europe (e.g., BYD), especially where tariffs are lower or can be bypassed via local assembly.

Stellantis-specific issues

• Many see the China bankruptcy as a Stellantis management failure, not just a China problem: long-term decline in Chinese sales, weak products, and poor JV structure.
• A heavily criticized cost-cutting CEO is blamed for stripping investment, raising prices, and alienating dealers, with short-term profit followed by a sharp profit collapse. Others argue North American operations resisted necessary restructuring.
• Stellantis’ brand mix is viewed as a bundle of struggling marques; some see only a few bright spots (Peugeot/Citroën in Europe, RAM/Jeep in the US). Confusing rebrands (e.g., “Stellantis & You”, DS vs Citroën) are cited as symptomatic.

EV strategy, infrastructure, and demand

• Several commenters argue European automakers had early EV tech but shelved it to protect ICE/diesel profits, outsourcing R&D and losing competence, while Tesla and Chinese firms pushed ahead.
• Others say European consumers were slow to adopt EVs due to poor charging infrastructure, apartment living, and lower purchasing power; subsidies largely helped wealthier homeowners first.
• Stellantis is criticized for late, mediocre EVs and delayed, expensive hybrids, plus a strategic focus on higher-margin “luxury” segments.

China’s long-term planning vs Western short-termism

• Multiple comments contrast China’s long-term industrial plans (e.g., EVs, batteries, vertical integration, mega‑plants) with Western focus on quarterly results, share buybacks, and executive pay.
• There’s extended reflection on whether democracies with short electoral cycles can support similar long-horizon industrial strategies, and how low political trust and inequality feed short‑term thinking.