Leapmotor's move to dismantle its overseas operations unit may be part of its partnership deal with Stellantis, according to local media.
Chinese electric vehicle (EV) company Leapmotor has reportedly scrapped its overseas business development team, following the launch of its joint venture with Europe's second-largest carmaker Stellantis NV, Leapmotor International, earlier this month.
Leapmotor's marketing system has seen a major shake-up in which the overseas business development unit has been dropped, local media outlet 21jingji said in a report today.
The company no longer has a separate overseas business unit, with members of the team transferred to departments including vehicle product lines, services, management and marketing, and operations, the report said, citing an internal notice by Leapmotor.
Leapmotor's move to dismantle its overseas business unit may be part of its partnership agreement with Stellantis, a source close to the Chinese EV maker said, according to 21jingji.
After the formation of their joint venture, there is no need for Leapmotor's overseas business unit to exist, and those businesses can be fully handed over to the joint venture company to manage, the person said.
Leapmotor's overseas business division was established in July 2020 with just one employee at that time, 21jingji's report noted.
A year after its establishment, the department still had fewer than five people, the report said, adding that even before it was dismantled, it had fewer than 20 people, and it was often the case that one person was taking on several roles.
Normally, the size of the overseas business department unit would need to be in the hundreds for Chinese companies that attach importance to overseas markets, 21jingji said, citing an unnamed person involved in overseas business at other car companies.
On October 26, 2023, Leapmotor said Stellantis would invest 1.5 billion euros ($1.6 billion) in it for a roughly 20 percent stake, making the European automaker its largest outside shareholder.
Leapmotor International was officially launched on May 14 this year and will begin selling vehicles in Europe from September.
Stellantis leads the joint venture with a 51 percent stake, while Leapmotor holds the other 49 percent.
Leapmotor International is headquartered in Amsterdam, the Netherlands, and is led by Xin Tianshu, vice president of Stellantis China, who serves as CEO of the joint venture.
The Jin-led JV management team is currently preparing for the European launch of the Leapmotor T03 and Leapmotor C10 models, Leapmotor said earlier this month.
Leapmotor International's initial market coverage will include Belgium, France, Italy, Germany, Greece, the Netherlands, Romania, Spain, and Portugal, with plans to expand its European sales network to 200 by the end of the year.
Starting in the fourth quarter, Leapmotor International will move into South America, the Middle East, Africa, and Asia-Pacific, according to plans announced earlier this month.
In addition to the dismantling of its overseas team, Leapmotor has merged its three original sales teams, with the head of sales reporting to chief operating officer Xu Jun, according to 21jingji.
Leapmotor's original sales teams included those in charge of dealer business, those in charge of ride-hailing car business, and those in charge of retail business, the report noted.
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