According to sources familiar with the matter, Stellantis NV (STLA.US), the manufacturer of Peugeot and Citroën vehicles, has identified four European plants potentially slated for sale or shared use as part of its efforts to address overcapacity. The facilities under consideration include the Rennes plant in France. The automaker has reportedly initiated discussions with potential partners or buyers. Earlier this month, representatives from China's Dongfeng Motor Group visited the Rennes and Madrid plants. Dongfeng's tour also included stops at Stellantis facilities in Italy and Germany. The two companies are currently in talks to revive their partnership, which may involve joint vehicle production in Europe and China. Sources indicated that no final decisions have been made regarding specific plants, negotiations remain fluid, and there is no guarantee agreements will be reached for any site. A previous joint venture between the two companies in China had faced operational challenges. Other Chinese manufacturers have also shown interest in the facilities, and Stellantis may pursue separate agreements with multiple parties. The current negotiations focus on potential arrangements to share facilities and utilize idle capacity in exchange for technology access, though the sale of one or more plants remains a possibility. Stellantis confirmed it regularly engages with various industry participants globally as part of its standard business operations but declined further comment. The company has informed the French and Italian governments that its excess manufacturing capacity in Europe involves four plants. These reportedly include the Rennes plant, the Cassino facility in central Italy, and the Madrid plant. Stellantis, which owns Fiat and Jeep, operates approximately 20 vehicle assembly plants in Europe, ranking as the region's second-largest automaker after Volkswagen. The press office of French President Emmanuel Macron and the French finance ministry did not immediately respond to requests for comment. The office of Italian Prime Minister Giorgia Meloni declined to comment. Separately, the group has decided to repurpose at least one facility, with the Poissy plant near Paris scheduled to cease automotive production after 2028. These changes are expected to result in job reductions and impact suppliers such as Lear Corp., Forvia SE, and OPMobility. Some labor unions are organizing protests on Thursday against the decision. Any potential agreements with Chinese entities would face intense scrutiny in France, which is preparing for presidential elections next year. Meanwhile, the Italian government has expressed openness to such investments. When asked this month about Dongfeng's potential interest in Stellantis sites like Cassino, Industry Minister Adolfo Urso stated Italy would "welcome foreign investors willing to bet on our country." Stellantis Chairman John Elkann and CEO Antonio Filosa have been actively developing solutions for European overcapacity as part of a broader business review. In the automotive industry, closing plants in the region remains politically sensitive and costly, as demand continues to lag behind pre-pandemic levels and car buyers remain cautious. Volkswagen withdrew plans last year to shut down several German facilities after facing opposition from worker representatives. While production declines at the Cassino plant in Italy have been monitored for months, the Rennes plant in western France has recently been hiring staff for production of the new Citroën C5 Aircross. By considering plants in different countries, Elkann and Filosa aim to distribute the potential impact on local employment and suppliers. The group is scheduled to unveil its new strategy during a capital markets day next month.