URGENT UPDATE: Stellantis is actively considering a significant shift in strategy by potentially adopting Chinese electric vehicle technology for its European brands. New reports from Bloomberg confirm that the automaker is looking to deepen its partnership with Chinese EV manufacturer Leapmotor to cut costs and enhance its competitive edge in the European market.
This development marks a pivotal moment, as it would be the first instance of a major Western automaker relying on Chinese technology to underpin its European vehicle lineup. The proposed collaboration includes leveraging Leapmotor’s advanced vehicle architecture, battery systems, and electric powertrain technology for models sold under well-known brands such as Fiat, Opel, and Peugeot.
The partnership is poised to expand the existing joint venture, Leapmotor International, which was established in May 2024. Stellantis initially invested approximately $1.8 billion in Leapmotor back in 2023, acquiring a 20% stake that has since declined to about 15%. Stellantis currently holds a controlling 51% stake in the joint venture and is already selling Leapmotor models through its European dealer network.
The urgency of this move comes as Stellantis grapples with considerable financial and competitive challenges. Earlier this month, the company faced a staggering $26 billion financial hit, driven by shrinking market share and declining profits. European automakers are increasingly threatened by fierce competition from Chinese EV brands like BYD, in addition to established rivals such as Volkswagen and Renault.
Should Stellantis and Leapmotor finalize an expanded technology-sharing agreement, it could provide Stellantis with faster access to cutting-edge battery and EV systems, significantly reducing research and development costs. However, any such agreement must navigate complex regulatory frameworks, including European data protection rules and US restrictions on connected vehicles with Chinese affiliations.
Talks between the two companies are reportedly in their preliminary stages, with both parties aiming to finalize terms later this year. The implications of this partnership could reshape the EV landscape in Europe, influencing not just Stellantis but the entire automotive sector.
As the situation develops, all eyes will be on Stellantis to see how this bold strategy unfolds. Stay tuned for more updates on this critical story as it progresses.
