06:52 AM EDT, 06/14/2024 (MT Newswires) -- Stellantis ( STLA ) Chief Executive Carlos Tavares told investors Thursday that the carmaking giant is already set to assemble Europe-bound electrical vehicles it is building with Chinese partner Leapmotor International outside of China in anticipation of European tariffs.

"We have already pre-decided from which level of tariffs we go Completely Knocked Down, and below that level of tariff, we go Completely Built Up," Tavares said, according to a transcript. "It is already decided. We don't have to wait for the tariffs to appear."

The automotive giant owns a 51% stake in Chinese co-owned Leapmotor International and said it plans to begin sales of its EVs in nine European countries in September.

The European Union is threatening to impose tariffs of 21% or 38% on Chinese EVs as part of an investigation into whether the carmakers are being unfairly supported by the Chinese state.

"We are not waiting for things to happen and fall on our face," said Tavares. "We are trying to anticipate what is going on in the world."

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