Chinas Leapmotor, which has been selling EVs since 2021 and has four models on the market, will start production of small cars at a Polish Stellantis plant as part of a joint venture between the two carmakers. The deal will give Stellantis, which owns the Chrysler brand, access Leapmotor’s advanced technology, including its proprietary “Four-Leaf Clover” centrally controlled electric and electronic architecture. The joint venture also gives Stellantis the right to sell and produce Leapmotor vehicles outside Greater China, a first for a legacy Western carmaker.
The companies did not disclose the deal’s financial details, which could be worth billions of dollars in future sales. Stellantis, which has a global workforce of about 43,000 employees, currently builds and exports EVs at plants in the United States, Canada, and Italy.
A plant in Poland will be used to produce a version of Leapmotors T03 small car, targeted at customers who prefer a sporty drive or are environmentally conscious. The production process will use the so-called semi-knocked down (SKD) technique, in which partially assembled kits are turned into finished vehicles on site. Production of the vehicle could begin as early as the second quarter of this year, and the company can build 500,000 units annually.
Stellantis CEO Carlos Tavares said the new partnership will enable him to internally benchmark Leapmotor vehicles and that if the economics make sense, the company may start building some of these Chinese EVs at its North American plants in the future. Tavares did not indicate when such a move might occur, but the company has already opened a facility in Detroit to build vehicles for its Chrysler brand.
Earlier this month, Leapmotor unveiled its C10 SUV at the IAA Mobility show in Munich, Germany. The Chinese firm aims to become a global player by 2020 and plans to release five more “globally-oriented” products over the next two years.
China’s auto industry has been booming, with sales of passenger cars up 9.1% in the first half of this year from a year ago. The country is now the world’s biggest carmaker by sales, and its market share has been rising. However, the auto industry is becoming increasingly competitive, with many carmakers needing help to boost sales as they fight off cheaper Chinese rivals.
