A360
Key Takeaways✦ Atlas AI
01
Joint EV production in Europe.
02
Utilizes Stellantis' underused factories.
03
Aims to mitigate EU tariffs.
Atlas AI
Stellantis and China's Leapmotor announced on Friday, May 8, plans to initiate joint electric vehicle (EV) production in Europe, expanding their existing partnership beyond distribution. This collaboration aims to leverage Stellantis' underutilized manufacturing capacity and facilitate Leapmotor's entry into the European production landscape, particularly for EVs.
The agreement involves the production of Leapmotor's B10 SUV and a new jointly developed electric C-SUV under the Opel brand at Stellantis' Zaragoza plant in Spain. The partners are also considering allocating additional Leapmotor models to Stellantis' Madrid plant from 2028, with a potential transfer of the site's ownership to their joint venture, Leapmotor International (LPMI). Stellantis holds a 51% stake in LPMI, while Leapmotor holds 49%.
This manufacturing expansion is designed to support the localization of EV production in Europe, potentially helping Leapmotor mitigate future European Union tariffs on Chinese-made EVs. The companies will also cooperate in purchasing auto parts through LPMI to enhance price competitiveness and accelerate time-to-market for new models, utilizing Chinese EV technology expertise and European supply chain capabilities.
