Chinese Automakers Are Moving In To European Factories To Beat Isolationist Laws
Happy Wednesday! It's October 14, 2026, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.
In this morning's edition we're looking at Chinese cars being built in Europe, and Stellantis loaning out factory space to make it happen. We'll also look at GM's China sales, and an Uber robotaxi lead leaving the company.
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1st Gear: Europe wants its cars built on the continent, for the continent, and Chinese automakers are happy to oblige
The European Union wants cars made for the continent to be made on the continent, but there are quite a few steps between wanting that and enacting legislation to make it happen. As the bloc goes through those steps, Chinese automakers — the very companies the EU is looking to keep out — have simply started building cars on European shores. From Reuters:
PARIS, Oct 13 (Reuters) – As Europe debates new local-content rules aimed at boosting local manufacturing, Chinese automakers are already building factories and supply chains across the continent, getting ahead of the measures before they have even been finalised.
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Many Chinese automakers, meanwhile, appear unwilling to wait for the outcome. Pressing ahead with localisation plans, they are expanding manufacturing and supplier networks in Europe before the details of any new requirements are settled.
Battered by an EV price war and slowing sales in China, the world's largest auto market, Chinese automakers increasingly see Europe as a key growth opportunity.
The EU will see benefits here for its workforce, but they may be smaller than the bloc hopes — its domestic automakers have been downsizing, so the influx of Chinese OEMs is likely to stem the bloodletting moreso than actually lead to any increase in jobs.
2nd Gear: Stellantis, too, is happy to loan its unused factory space to Chinese OEMs rather than shutter factories
As a perfect example of the above, take Stellantis. The company isn't utilizing all of its production capacity in Europe, but it's not planning to shutter its factories — instead, the automaker will bring Chinese tenants into its factory spaces to keep the lights on. From Automotive News:
PARIS — Stellantis will fill its underused European factories with vehicles from Chinese partners and its own new models rather than close plants, CEO Antonio Filosa said, even as Volkswagen Group moves to shut four of its own factories and cut jobs.
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Filosa and the head of Stellantis' Europe region, Emanuele Cappellano, said that partnership agreements with China's Leapmotor and Dongfeng could help fill those plants, along with new products such as the low-cost E-Car program that will bring three models to the Pomigliano factory in Italy.
Automotive News draws a contrast here, between Stellantis bringing in Chinese OEMs and Volkswagen simply shuttering factories. Both have their risks and rewards: Stellantis keeps its production spaces and likely makes a bit of cash off the Chinese tenants, but allows its competition to build tariff-free vehicles. Volkswagen scales itself down in a way that's harder to come back from, but doesn't help its competition.
3rd Gear: GM, like everyone else, is doing badly in China
Yesterday, we talked about plenty of OEMs that are doing poorly in China. Today, we can add GM to the list. From Automotive News:
SHANGHAI – General Motors' deliveries in China slumped 24 percent in July-September, falling for a fourth straight quarter as overall demand falters on China's lackluster economy , elevated fuel prices and a new sales tax on electric vehicles.
GM's sales in the world's biggest auto market dropped to 358,000 vehicles in the quarter and chalked a 21 percent decline for the first nine months, falling to around 1.07 million vehicles, the Detroit automaker's China unit said Oct. 9.
The quarterly result was nearly flat from the 357,000 vehicles sold in April-June.
At least all the import brands are collapsing approximately evenly. China's economy is mirroring that of much of the rest of the world, going all K-shaped and jingoistic, and the rest of the world is learning what happens when you rely on a market that turns that way.
4th Gear: Man leaves job
Uber's head of autonomy is leaving the company, and leaving the world of autonomy entirely — he'll be moving from Uber to lead a company that has absolutely nothing to do with transportation, according to reports. From Bloomberg:
An Uber Technologies Inc. executive overseeing the company's global autonomous efforts across ride-hailing and delivery will depart next month, the latest in a string of leadership departures in the division this year.
Sarfraz Maredia, who has been with the company for more than 12 years, is leaving to pursue a top executive role at an undisclosed company outside of the transportation industry, according to an Uber spokesperson. His last day at Uber will be Nov. 16.
Have fun at the new place, man.
Reverse: Dudes rock
Hell yeah, Chuck.
The Fuel Up
Ah, the midweek price stagnation. Will we get more bombs over the weekend, or will prices remain stable into next week? Surely you can bet on this on some website.
On The Radio - Chromatics - 'Cherry'
You ever think about "Drive" (2011)? I still think about "Drive" (2011). I know this song wasn't in that, but the vibes are right.