- The move would mark the first time a major Western automaker relies on a Chinese company's vehicle architecture and software to support European models.
- Stellantis is considering adopting Leapmotor's EV technology to reduce costs for its European brands, including Fiat, Opel, and Peugeot.
European auto giant Stellantis NV is considering adopting electric vehicle (EV) technology from its Chinese partner Leapmotor (HKG: 9863) to reduce costs for its mass-market European brands including Fiat, Opel, and Peugeot, Bloomberg reported Thursday, citing people familiar with the matter.
The potential move would mark the first time a major Western automaker relies on a Chinese company's vehicle architecture and software to support its European models.
The sources said Stellantis is evaluating expanding the scope of its joint venture with Leapmotor to access the latter's more advanced battery and electric powertrain technologies.
The parties aim to finalize an agreement this year, though negotiations remain in early stages and must overcome regulatory hurdles including data protection concerns and US restrictions on connected vehicles with Chinese ties, the report noted.
This consideration for deepening cooperation comes as Stellantis navigates a painful strategic restructuring.
Facing intense competition in Europe from Chinese automakers like BYD (HKG: 1211, OTCMKTS: BYDDY) and local rivals like Volkswagen and Renault in the European market, adopting Leapmotor's technology would save Stellantis substantial R&D expenses and provide a shortcut to enhancing product competitiveness, Bloomberg noted.
Earlier this month, Stellantis announced asset impairments and charges totaling €22.2 billion ($26.2 billion) to address declining market share and profits.
The partnership between Stellantis and Leapmotor began in 2023 when the former invested EUR 1.5 billion to acquire about 20% of Leapmotor's shares, now diluted to 15%.
In May 2024, the two parties established Leapmotor International, a joint venture with Stellantis holding a 51% stake.
Currently, Stellantis sells models like the Leapmotor C10 through its European dealer network and is accelerating the brand's global expansion.
Beyond deepening its European market presence, the partnership has expanded into broader emerging markets, including C10 production in Malaysia and Leapmotor vehicle sales in South Africa.
($1 = EUR 0.8473)
