Stellantis, Chinese Firm Will Team to Build EVs in Europe

 

 

“Jeep maker Stellantis said two of its factories in Spain would produce electric vehicles with China's Leapmotor, in a closely watched test case of collaboration between Western automakers and their fast-growing Chinese rivals.

 

The plan to manufacture Leapmotor EVs in Spain marks the first time a big Western carmaker has offered up European manufacturing facilities to a Chinese brand. The move could help Stellantis cut costs while also fueling fears that an influx of locally built Chinese EVs will turbocharge the already fierce competition in the European car market.

 

Chinese carmakers are rapidly taking market share almost everywhere apart from the U.S. -- where they are all but banned -- by offering advanced technology at low prices. How established automakers and policymakers respond to their rise is one of the hottest questions in the global auto industry.

 

Stellantis made an early bet that a partnership was the best way to compete. In 2023 it bought a 21% stake in Leapmotor -- then a somewhat obscure Chinese brand -- and set up a joint venture to sell its EVs outside of China. Leapmotor has since been one of the most successful Chinese EV makers, with sales more than doubling last year.

 

Extending the partnership to include local production would bring to Europe "world-class manufacturing of electric vehicles at affordable prices," Stellantis Chief Executive Antonio Filosa said Friday.

 

Under the agreement, a Leapmotor sport-utility vehicle will be produced at Stellantis's vast plant in Zaragoza, Spain, starting as soon as this year.

 

Other Leapmotor products could also be made at a smaller Stellantis plant near Madrid, starting in 2028. Ownership of the Madrid plant would potentially then be shifted to the Stellantis-Leapmotor joint venture, the company said.

 

Ford Motor and Geely Holding are also in talks about a collaboration that could involve the U.S. carmaker sharing its factory in Valencia, Spain, with the Chinese automaker.” [1]

 

1. Stellantis, Chinese Firm Will Team to Build EVs in Europe. Wilmot, Stephen.  Wall Street Journal, Eastern edition; New York, N.Y.. 11 May 2026: B2.