Stellantis Forges Global Partnership with Chinese Startup for Electric Vehicle Sales
Stellantis, the renowned automaker housing iconic brands like Jeep and Chrysler, has forged an exciting alliance with Chinese electric vehicle startup, Leapmotor, to propel the global sale of electric vehicles
Stellantis, the parent company of popular automotive brands including Jeep and Chrysler, has recently joined forces with a Chinese startup in the increasingly competitive electric vehicle (EV) industry.
On Thursday, the Dutch conglomerate revealed its plans to purchase a 20% share in Leapmotor, an EV manufacturer based in Hangzhou, for approximately â¬1.5 billion (almost $1.6 billion).
Stellantis and Leapmotor have partnered to establish a joint venture, granting Stellantis exclusive rights to manufacture, export, and distribute vehicles of Chinese brands in regions outside of Greater China. Initially, the focus will be on penetrating the European market. Stellantis will hold a majority stake of 51%, while Leapmotor will possess a 49% share. The joint venture anticipates commencing shipments in the latter half of 2024.
Stellantis will be able to utilize the startups "cost-effective electric vehicle ecosystem" as part of its own fleet objectives, including the commitment to introduce over 75 fully electric models by 2030. Established automakers are now showing interest in Chinese brands due to their capability to rapidly produce and offer electric vehicles at competitive prices, enabling them to provide cost-effective options to consumers.
The Tokyo Auto Salon in Chiba, Japan, hosted by Mitsubishi Motors Corp., showcases their captivating signage. This event takes place annually at the Makuhari Messe convention center from January 13th to 15th, 2023. Photographer Kiyoshi Ota captures this mesmerizing scene for Bloomberg via Getty Images.
Kiyoshi Ota/Bloomberg/Getty Images
Mitsubishi Motors is ending production in China
In July, Volkswagen made known its acquisition of a 5% stake in Xpeng, a Chinese EV manufacturer. Additionally, they disclosed a strategic partnership aiming to collaborate on the development of new vehicles.
According to undisclosed sources cited by Reuters last month, Mercedes was reportedly engaged in discussions to invest in Nio, a Chinese EV manufacturer. The potential investment would grant Mercedes access to the startup's research and development as well as its technology.
A spokesperson from Mercedes informed CNN that their CEO is actively engaged in regular communication with various industry leaders, including the chairman of Nio. However, there are currently no intentions of investing or collaborating with Nio. Despite a previous request for comment, the Shanghai-based startup did not respond. As of Thursday, both Mercedes and Nio have yet to provide any updates. Stellantis' most recent partnership announcement follows the termination of their joint venture with Guangzhou Automobile Group Company (GAC) in China, which had been responsible for the production and distribution of Jeep trucks in the country.
The Dutch group, Stellantis, has confirmed that it will maintain its "asset-light approach" in the country, even after the new partnership. According to a stock exchange filing by Chinese firm Leapmotor, Stellantis is acquiring their shares for 43.8 Hong Kong dollars ($5.6) each, which is a 19% premium compared to the previous day's closing price.
Investors werent impressed, however. Leapmotor shares plunged 11% in Hong Kong on Thursday after the announcement of the deal.
