Stellantis Invests in Chinese Leapmotor to Expand EV Sales

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Stellantis* and Leapmotor** have announced that Stellantis plans to invest €1.5 billion to acquire ~20% of Leapmotor, making Stellantis a significant shareholder. The deal also outlines the formation of Leapmotor International, a 51/49% Stellantis-led joint venture that has exclusive rights for the export and sale, as well as manufacturing, of Leapmotor products outside Greater China. The move is not without its critics because it ties Stellantis to a company controlled by the Chinese communist party. Stellantis had previously stopped making vehicles in China. (AutoInformed: Tilt! Stellantis and GAC to Stop Jeep China JV)

“As consolidation unfolds among the capable electric vehicles start-ups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China,” said Stellantis CEO Carlos Tavares.

“We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours. Through this strategic investment, we can address a white space in our business model and benefit from Leapmotor’s competitiveness both in China and abroad. I want to thank Mr. Zhu Jiangming and the teams from both sides of our great companies for their leadership and collaboration in creating this new opportunity for both of us,” Tavares claimed.

Stellantis also claims that this will be an industry-first global electric vehicle relationship between a leading automaker and a Chinese NEV OEM. The partnership aims to further increase Leapmotor’s sales in China, the biggest market in the world, while using Stellantis’ established global commercial presence to accelerate Leapmotor brand sales in other regions, starting with Europe. The UAW, currently, striking an extremely profitable, US truck plant at Stellantis over the EV future, has yet to be heard from. (AutoInformed:  UAW On Strike at Stellantis Sterling Heights RAM Plant)

Stellantis intends to leverage Leapmotor’s “cost-efficient EV ecosystem in China to help meet core Dare Forward 2030 electrification targets, with the possibility to further explore mutually beneficial synergies. The joint venture expects to begin shipments in the second half of 2024.”

* Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP)
** Zhejiang Leapmotor Technologies Ltd (9863.HK)