Stellantis is deepening its ties with Chinese automakers, a move that could reshape the European electric vehicle market.
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Stellantis to build Leapmotor EVs in Europe, targeting 2028 launch
Stellantis NV will leverage its partnership with China's Leapmotor to begin producing electric vehicles in Europe by 2028, a strategic pivot aimed at capturing a larger share of the continent's growing EV market while navigating potential EU tariffs on Chinese imports. The move signals a broader industry trend of legacy automakers collaborating with new Chinese competitors.
"Partnerships will be embedded in our strategy going forward," Stellantis CEO Antonio Filosa said at the Financial Times’ Future of the Car Summit. Filosa emphasized the plan to use such collaborations for technological improvement, supply chain efficiency, and better capacity utilization.
The deal will see Leapmotor models produced at two of Stellantis's factories in Spain, according to company announcements. This follows a recently revived partnership with Dongfeng Motor Corp. in China and precedes the unveiling of a new multi-year business plan on May 21 in the US, where brand strategy for core names like Jeep, Ram, Peugeot, and Fiat will be a central point.
For Stellantis, this strategy offers a capital-efficient way to bolster its EV lineup using mature Chinese technology, potentially accelerating its transition away from internal combustion engines. For the wider European auto industry, it signals a new era of competition where legacy automakers may increasingly partner with, rather than solely compete against, new entrants from China that are rapidly gaining market share.
A Model for Future Deals
Filosa suggested the Leapmotor deal could serve as a template for future cooperation, and not just with Chinese manufacturers. He noted that Stellantis's large global manufacturing footprint and wide brand portfolio make it an attractive partner. Chinese carmakers are increasingly eager to use existing European plants to build vehicles locally, allowing them to avoid import duties and more effectively penetrate the market.
The strategy is not without risks, exposing Stellantis to geopolitical tensions between Europe and China. However, it also provides a potential hedge against the rapid market share gains of Chinese brands like BYD and MG. By joining forces, Stellantis gains immediate access to competitive EV platforms, while Leapmotor secures a manufacturing and distribution base inside Europe. The company is set to unveil more details on its comprehensive business review and brand strategy on May 21.
This article is for informational purposes only and does not constitute investment advice.
[1] Stellantis' Leapmotor partnership points to a wider — and riskier— industry gamble[2] Stellantis’ Leapmotor partnership points to a wider — and riskier— industry gamble[3] Partnerships are key to our survival, says Stellantis CEO Antonio Filosa[4] Trump-Xi summit raises a terrifying prospect for America and Europe: Chinese cars[5] Stellantis CEO says partnerships central to carmaker’s strategy
