Leapmotor (HKG: 9863) and FAW Group will collaborate on the development of new electric vehicle (EV) models based on Leapmotor's B platform for sale in overseas markets, according to a report by local media outlet Jiemian today, citing sources.
This is similar to the cooperation model between Leapmotor and Stellantis, the report noted.
This is the first report by a major media outlet on the details of the cooperation since the two companies announced their partnership in March.
Leapmotor and FAW signed a strategic cooperation memorandum of understanding on March 3 at FAW's headquarters in Changchun, Jilin province, to jointly develop passenger new energy vehicles (NEVs) and collaborate on components, according to a statement at the time.
Leapmotor launched its first B-series model, the B10, on April 10, targeting the popular compact SUV (sport utility vehicle) market with a starting price of RMB 99,800 ($13,940).
The Chinese startup is holding a launch event for the B01 electric sedan, the second model in the B-series.
FAW had hoped to invest in a Chinese NEV startup and even considered acquiring the company, but the deal ultimately fell through, according to a source from the unnamed automaker cited by Jiemian today.
Stellantis invested €1.5 billion in Leapmotor in 2023 to acquire about 20 percent of the company, becoming the Chinese EV maker's largest external shareholder.
In the past two years, Leapmotor has entered 30 international markets through Stellantis' sales network and exported more than 20,000 vehicles in the first half of this year.
In addition to its cooperation with FAW, Leapmotor will also cooperate with FAW-Volkswagen, FAW and Volkswagen's joint venture in China, according to Jiemian.
Leapmotor's cooperation with FAW-Volkswagen may be similar to Xpeng (NYSE: XPEV) and Volkswagen's cooperation, with FAW-Volkswagen developing and selling new models in the domestic market based on Leapmotor's technical architecture, the report said.
For FAW-Volkswagen, the cooperation will be an opportunity for it to transform to electric and intelligent vehicles, the report said, adding that Leapmotor's in-house developed technical architecture and sales growth have proven its leading advantage in electrification and intelligence.
($1 = RMB 7.1574)
