Stellantis, China's Leapmotor to expand EV partnership to joint manufacturing in Europe
Expansion of Stellantis and Leapmotor Partnership
Background of the Partnership
MILAN, May 8 (Reuters) - Stellantis and China's Leapmotor plan to expand their partnership from a commercial arrangement to a manufacturing cooperation in Europe, the Franco-Italian automaker said on Friday.
Stellantis bought a 21% stake in Leapmotor in 2023 and formed a largely commercial joint venture where the Franco-Italian car group has the rights to sell Leapmotor electric vehicles outside China.
Stellantis has a 51% stake in the Leapmotor International (LPMI) JV, while the Chinese electric vehicle maker holds a 49% stake.
Details of the Manufacturing Cooperation
Production Plans in Europe
Under the plan announced on Friday, the partners are adding production of Leapmotor's B10 SUV and of a new jointly developed electric C‑SUV under the Opel brand at Stellantis' Zaragoza plant in Spain.
Cooperation in Auto Parts Purchasing
They will also cooperate in purchasing auto parts through LPMI, to benefit from combined scale and established Chinese know-how in EV technology.
Objectives and Strategic Goals
"The objective would be to boost price competitiveness by leveraging the Chinese New Energy Vehicle ecosystem, while using European supply chain capabilities to strengthen resilience and accelerate time-to-market for new models," Stellantis said in a statement.
Future Prospects and Considerations
Potential Expansion to Madrid Plant
The two groups are also considering allocating new Leapmotor models to Stellantis' Madrid plant, in Spain, from 2028 and potentially transferring the ownership of the site to LPMI.
Reporting and Editorial Credits
(Reporting by Giulio Piovaccari, editing by Giulia Segreti and Susan Fenton)
