Intimate embrace
Stellantis is buying a significant stake in Chinese EV manufacturer Leapmotor. It will take a 20 percent stake in the Chinese company for approximately 1.5 billion euros. The two companies are also setting up a joint venture in which Stellantis will take the lead. Interesting: this partnership also focuses on building and selling cars outside China.
Stellantis has gradually withdrawn from China. Not long ago, after disappointing results, it pulled the plug on the joint venture that Jeep had with GAC until recently. Does Stellantis leave China for what it is? Certainly not. It has pulled out new arrows and the large group is also focusing more sharply than ever on China. It takes a stake of roughly 20 percent in the Chinese Leapmotor, a manufacturer of electric cars.
Stellantis is also establishing a partnership with Leapmotor, which will be called Leapmotor International. Stellantis will own 51 percent of the shares, i.e. a majority interest. This partnership should also make it possible to export Leapmotor products to countries outside China, as well as to produce them outside China.
The relationship that Stellantis enters into with Leapmotor is somewhat reminiscent of the collaboration between Volkswagen and Xpeng. Just like Volkswagen and Xpeng, Stellantis and Leapmotor will also use and produce EV technology from each other. This joint venture should be set up in the second half of next year. Undoubtedly, the partnership with Leapmotor should contribute to expanding Stellantis’ electric model range. Stellantis calls Leapmotor’s EV technology complementary to its own technology and says the partnership will allow it to “provide more affordable mobility solutions globally.” It has not yet been explained to what extent electric cars from Stellantis with Leapmotor technology or on a platform of that company will come onto the market in Europe. According to Stellantis, we are still looking at how the synergy between the two companies can be increased. Stellantis has set itself the goal of selling only fully electric cars in Europe from 2030. So it could use some help.
Stellantis also has a significant partnership with Dongfeng. Peugeot and Citroën cars are produced there by the Dongfeng Peugeot-Citroën joint venture. You also notice this in the Netherlands. The Citroën C5 X is also built for the European market.
Leapmotor sold more than 110,000 cars in China last year. Over the next three years, Leapmotor wants to expand its EV portfolio with an extensive range of electric models. This not only concerns C, D and E segmenters, but also B and even A segmenters. The collaboration between Stellantis and Leapmotor should also help the latter company to grow its sales in China.
Pictured: the Leapmotor C11.
– Thanks for information from Autoweek.nl