Vauxhall owner Stellantis could receive huge investments from Chinese car brands in the near future as some of its sub-brands struggle.
Reports from Bloomberg state that Stellantis has explored a deal with Chinese companies Xiaomi and Xpeng to invest in its struggling European operations.
Company executives reportedly met with the two Chinese brands to discuss a "potential overhaul" of Stellantis in Europe.
If this were to go ahead, Xiaomi and Xpeng could acquire stakes in brands including Fiat and Maserati.
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According to information from people with an understanding of the talks, discussions have also involved potential access for Chinese brands to grow in Europe with automaking capacity.
A spokesperson for Stellantis told Bloomberg that it would not comment on speculation around its business.
It added: "As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics, always with the ultimate aim of providing customers with the best mobility choices."
Reports suggest Chinese brands could invest in Stellantis
| REUTERSStellantis has recently made a number of key changes to its plans, especially due to the weaker uptake of electric vehicles across its range of brands.
The Dutch-based company includes Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM and Vauxhall.
Bloomberg also suggested that any potential overhaul could lead to "further separation" between the United States and European arms of the company.
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The sources suggested that Chinese firms could invest in struggling Stellantis brands
|REUTERS
However, a spokesperson added: "Stellantis states in the most categoric terms that there is no truth in the suggestion that it is considering a plan to split the company. Any assertion to the contrary is pure invention."
The company recently overhauled its strategy in response to weaker EV sales, with Stellantis expected to deliver its new strategy in May.
As part of this, it wrote off almost £19billion to cover its decision to axe some electric vehicle endeavours.
Xpeng and Xiaomi could be involved in the potential investment in Stellantis
| XPENGThe potential investment also comes as Chinese manufacturers make major strides into the UK and European markets, with popularity surging thanks to cheap electric cars and impressive technology.
Xpeng has already launched in the UK and stands as one of the many rapidly expanding Chinese brands, including the likes of BYD, Jaecoo, Omoda and Chery.
Forecasts suggest that the growing number of Chinese brands in the UK could eventually lead to automakers from China representing one-fifth of new car sales by as soon as 2027.