Stellantis, the European-based automaker known for brands like Jeep and Ram, has announced a strategic partnership and joint venture with Chinese electric vehicle manufacturer, Leapmotor. The companies will work together to expand Leapmotor’s sales both within and beyond China, with Stellantis making an investment of approximately 1.5 billion euros (around $1.6 billion) in the Chinese firm.
This partnership comes as Stellantis seeks to accelerate its shift towards electric vehicles and benefit from Leapmotor’s “tech-first EV ecosystem” in China. The investment will grant Stellantis a 20% stake in Leapmotor and establish a Stellantis-led joint venture with a majority stake of 51%. Under this joint venture, Stellantis will have exclusive rights to export and sell Leapmotor’s vehicles outside of China.
Leapmotor, headquartered in Hangzhou, China, has established a strong presence in the mid- to high-end electric vehicle market in its home country, recording sales of 111,000 electric vehicles in 2022. The company currently offers three impressive EV models – the BEV T03, the SUV C11, and the C01 sedan.
Following the announcement of this partnership, Hong Kong-traded shares of Leapmotor experienced a 9.2% decline on Thursday, reflecting the reaction of investors to the news.
Stellantis N.V., the parent company, was formed through the merger of Fiat Chrysler Automobiles and the PSA Group. Headquartered in Amsterdam, Stellantis has a global reach and continues to explore strategic collaborations and partnerships to strengthen its position in the EV market.
