Stellantis and Leapmotor will initiate collaborative vehicle manufacturing in Europe, extending their alliance from distribution to production, Stellantis revealed on Friday.
The news arrives just before Stellantis CEO Antonio Filosa’s business plan presentation on May 21, as he aims to reclaim market share in North America and Europe while enhancing operational performance.
As stated in the announcement, the firms will boost EV manufacturing in Europe and utilize Stellantis' underused plants to enhance output while speeding up Leapmotor's presence in regional production.
Stellantis announced that the strategy promotes local EV manufacturing and seeks to provide more cost-effective EVs.
At the same time, Leapmotor intends to minimize its exposure to European Union tariffs on EVs manufactured in China by relocating production to Europe.
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The firms stated that the approach enhances competitiveness by merging European supply chain capabilities with expertise in Chinese EV technology.
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Significantly, the car manufacturer and Leapmotor intend to allocate new Leapmotor models to Stellantis' Madrid facility in Spain starting in 2028 and might hand over site ownership to Leapmotor International, their collaborative venture.
At Stellantis’ Zaragoza facility in Spain, the firms will manufacture Leapmotor’s B10 SUV and a collaboratively designed electric C-SUV under the Opel name.
Opel announced that the new electric vehicle, created in less than two years, will be the initial offering from the broadened collaboration.
Moreover, the firms will collaborate on procuring auto parts via the joint venture to enhance scale and cost-effectiveness.
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They stated that the partnership will merge China’s New Energy Vehicle framework with European supply chain strengths to expedite development, enhance resilience, and reduce time-to-market for new models.
Stellantis N.V. is a prominent worldwide car manufacturer established in 2021 through the merger of Fiat Chrysler Automobiles (FCA) and PSA Group. Based in Amsterdam, it oversees 14 legendary automotive brands (such as Jeep, Ram, Dodge, Fiat, Peugeot, and Maserati) and two mobility brands, functioning in more than 130 markets with approximately 260,000 staff.