Published : 3 weeks ago, on 11/11/2024

SHANGHAI (Reuters) -Stellantis and its Chinese partner Leapmotor have scrapped a plan to make a second electric vehicle model at the European automaker’s plant in Poland, two people with knowledge of the matter told Reuters. The joint venture is instead considering using a Stellantis factory in Eisenach, Germany that produces Opel models and its Trnava plant in Slovakia as alternative production sites for the B10 electric crossover, said one of the people. Stellantis and Leapmotor declined to comment. The two people with knowledge of the decision declined to be identified because the matter remains private. The shift in production plans by the joint venture was made after the Chinese government privately told automakers to halt big investments in European countries that supported imposing extra tariffs on Chinese-made EVs, the two people said.

Chinese automakers were told at a meeting with China’s Ministry of Commerce on Oct. 10 that they should pause their large-scale investment plans in European Union countries that had backed the tariff proposal, Reuters has previously reported.

Leapmotor and Stellantis displayed the upcoming B10 EV at the Paris Motor Show four days after that meeting in an Oct. 14 debut both carmakers hailed as a milestone in their partnership. Poland is among the 10 EU members which supported the EU’s decision to impose tariffs of up to 45% on imported Chinese-made EVs.

Five EU members, including Germany and Slovakia opposed the tariffs, and 12 other member states abstained from the vote to approve the tariffs, which took effect on Oct. 30. Stellantis and Leapmotor have not disclosed where the B10 SUV will be produced, and it was not clear if factors other than the pressure from Beijing on China’s automakers had played a role in the decision to shift planned production of the B10 from Poland. China’s State Council Information Office, the agency that speaks for the government, did not immediately respond to a request for comment. China’s Ministry of Commerce also did not immediately respond to a request for comment from Reuters. Polish industry ministry did not immediately reply to a request for comment. Stellantis’ Tychy plant in Poland has been producing the T03 compact EV with components shipped from China. It is not immediately clear whether the T03 assembly was also under review and whether the plan would have impact on jobs. Production in Germany, an option under consideration for the new joint-venture EV, would be more expensive than Poland in terms of utility costs and labour, the first person familiar with the review said.

Leapmotor has said the B10 is the first of a B series of EVs it will roll out designed for markets outside China, including Europe, where it began sales in September. Stellantis CEO Carlos Tavares said the partnership with Leapmotor and the B10 was a way to bring “high-tech, affordable” EVs to consumers outside China.

Stellantis owns a 51% stake in the joint venture with its Chinese EV partner. Leapmotor owns the remaining 49% of the partnership, Leapmotor International. German and Slovakian governments did not immediately reply to a request for comment from Reuters. Opel was not immediately available for comment. Chinese companies have to seek approval from Beijing for their direct investments overseas under Chinese laws and regulations.

(Reporting by Zhang Yan and Kevin Krolicki; Additional reporting by Giulio Piovaccari, Qiaoyi Li, Christoph Steitz, Alan Charlish, Jason Hovet and Anna Wlodarczak-Semczuk; Editing by Miyoung Kim and David Evans)