Deepening Stellantis Cooperation with a Chinese Manufacturer
The Stellantis automotive group is strengthening its ties with the Chinese electric vehicle sector, seeking a more efficient path through the electric transition. In 2023, the group struck a deal with Chinese EV startup Leapmotor, buying a 20% stake in the company for $1.1 billion. This deal made Stellantis the exclusive distributor of Leapmotor models in Western markets.
Now it seems the relationship could go beyond distribution. Stellantis could potentially gain access to its partner’s EV technologies for brands like Fiat, Opel, and Peugeot.
Technological Advantages and Challenges
According to unnamed sources, Stellantis wants to gain access to Leapmotor’s battery and electric drive technologies. It is understood that discussions are in the early stages, but using Leapmotor’s systems would help Stellantis save billions of dollars in development costs and allow it to launch competitors to cars from Chinese rivals like BYD and MG, as well as traditional brands including the Volkswagen Group and Renault, more quickly.
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However, the actual use of Leapmotor’s battery and electric technologies could prove challenging. For example, vehicles using connected systems linked to China will be banned from import and sale in the USA from 2027.
Strategic Plans and Management Comments
Speaking about the cooperation between the two companies, Stellantis CEO Antonio Filosa noted that the “technical partnership… will help us achieve a higher level of competitiveness, especially with electric cars, and that is very important for Europe.”
He added that the partnership would also “improve our cooperation in developing new technologies,” stating that “2025 was the year of strategic implementation of the partnership, laying the groundwork for deeper integration.”
Financial Losses and Strategy Pivot
Earlier this month, Stellantis announced write-downs and charges of 22.2 billion euros ($26.1 billion) as it scaled back its electric vehicle development strategy. However, the company understands it cannot completely abandon EVs, which is why it is interested in deepening ties with Leapmotor.
Through the Leapmotor International joint venture, Stellantis has helped the Chinese brand launch several of its models, such as the C10 and B10, in markets including Europe and Australia. For a short period, it also produced the small T03 in Poland, but this ceased last year due to fluctuations in international trade policy. This year, Stellantis plans to start production of Leapmotor cars at its plant in Zaragoza, Spain.
This move by Stellantis reflects a broader trend in the global automotive industry, where traditional giants are increasingly seeking partnerships with Chinese technology leaders to accelerate their electric transition. The financial write-downs indicate the complexity and high cost of developing proprietary platforms from scratch, making collaboration an attractive alternative. The success of this strategy will largely depend on geopolitical dynamics, especially regulations in key markets like the EU and the USA regarding Chinese technologies and data. The ability to adapt Leapmotor’s technologies to local requirements and data security norms will be a decisive factor in realizing these ambitious plans.