Summary
- Tie-up expands from sales to manufacturing in Europe
- Plan targets EV output, filling underused capacity
- Zaragoza plant to build Leapmotor B10, new Opel SUV
- Partners consider transferring Madrid plant ownership to JV
MILAN, (Reuters) – Stellantis and China’s Leapmotor plan to start joint car production in Europe, with two models to be built in Spain, deepening their tie-up beyond distribution into manufacturing, the Franco-Italian automaker said on Friday.
The move comes ahead of Stellantis’ new business plan on May 21, as CEO Antonio Filosa seeks to regain market share in North America and Europe and turn around operations.
BENEFITS FOR BOTH
The deal, which could be the first of many between European and Chinese automakers, aims to boost European output, especially of electric vehicles. It will help fill underutilised capacity at Stellantis factories while giving Leapmotor a fast route to manufacturing in the region.
It will also strengthen Stellantis’ EV lineup after it scaled back in-house development earlier this year and booked more than 22 billion euros ($25.9 billion) in charges.
“This plan … is expected to support production and advance localisation in Europe of world-class manufacturing of electric vehicles at affordable prices,” Filosa said in a statement, adding Stellantis aims “to deepen our partnership and take one more step towards even greater collaborations in the future”.
The companies are also considering allocating new Leapmotor models to Stellantis’ Madrid plant from 2028 and potentially transferring its ownership to the Stellantis-backed joint venture Leapmotor International (LPMI).
For electric cars, the plan would help Leapmotor avoid European Union tariffs on Chinese-made EVs. Among Chinese carmakers, Xpeng and GAC already produce cars at a Magna factory in Austria.
SHARED PLANT FOR OPEL, LEAPMOTOR MODELS
Stellantis bought a 21% stake in Leapmotor in 2023 and formed LPMI, a largely commercial JV through which it sells Leapmotor EVs outside China.
Stellantis holds 51% of LPMI, with Leapmotor owning 49%.
Under the new plan, the partners will build Leapmotor’s B10 SUV and a new jointly developed electric C-SUV under the Opel brand at Stellantis’ Zaragoza plant in Spain.
Both plans were previously reported by Reuters.
In a separate statement, Opel said the new model, to be developed in less than two years, would be the “first product arising from the contemplated expanded partnership”.
Opel chief Florian Huettl said on LinkedIn the car would combine core parts of Leapmotor’s electric architecture and battery technology with Opel’s design and chassis engineering.
COOPERATION EXTENDS TO PARTS PURCHASING
Stellantis and Leapmotor will also cooperate on parts purchasing through LPMI to tap combined scale and Chinese EV know-how.
“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.
($1 = 0.8493 euros)
Reporting by Giulio Piovaccari. Editing by Susan Fenton, Elaine Hardcastle and Mark Potter
