Leapmotor Gets Bigger Avenue Into Europe — And Beyond
Image Credit: Leapmotor
May 16, 20263 hours
Zachary Shahan
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Following the theme of the week — Chinese EV producers expanding rapidly around the world — we have another story of a Chinese EV company opening up bigger pathways abroad. Stellantis and Leapmotor have had a partnership helping each other, and that’s expanding.
Part of this is about expanding Stellantis’ EV lineup. But part of it is also about opening up bigger avenues into Europe for Leapmotor.
“Increasing production at Stellantis’ Zaragoza plant, Opel’s historical manufacturing site, where an all-new electric battery powered Opel C-SUV would be added on a new line alongside Leapmotor’s C-SUV B10 model,” is one part of the expansion, Stellantis writes, as is “Expanding LPMI’s joint purchasing initiatives to increase Stellantis’ European BEV affordability and accelerate time-to-market for new models.” Yup, that’s mostly about Stellantis so far. Now, on to what Leapmotor is getting out of this in its march across the world to sell more and more EVs:
“Reinforcing the future of Stellantis’ Villaverde, Madrid plant, by allocating Leapmotor future products for European and global markets, with several nameplates manufactured in line with Made-in-Europe requirements, and with the intention to transfer the plant’s ownership to LPMI’s Spanish subsidiary.”
Yup — another Chinese EV producer finding a pathway to sell more and more EVs in Europe and other foreign countries.
All of that said, this partnership is a big one for Netherlands-based Stellantis. The company owns a large portion of Stellantis, and the majority of their joint venture in Europe. “In October 2023, Stellantis became the single largest shareholder of Leapmotor by acquiring an approximately 21% stake. At the same time, Leapmotor International (‘LPMI’) was launched as a 51% Stellantis / 49% Leapmotor joint venture with exclusive rights for the sale and manufacturing of Leapmotor products outside Greater China.” So it’s not just about Chinese EV producers expanding and eating up markets abroad.
LPMI launched the T03 and C10 just about 18 months ago, and they reached 40,000 deliveries last year through 850 points of sale. The LPMI business has now stretched into South America, Asia-Pacific, the Middle East, and Africa. Additionally, as of last month, it is in Mexico.
Here are more details from Stellantis on how it and Leapmotor are expanding their partnership:
- Firstly, in a move to significantly increase production at Stellantis’ Figueruelas plant, in Zaragoza, Spain, the parties are assessing the addition of a new line to manufacture Opel’s all new C-SUV BEV model, with timing under evaluation, including a potential start of production in 2028. This would be in addition to the current production of the Peugeot 208 and the Lancia Ypsilon at Figueruelas. Leapmotor would also bring production of its C-SUV B10 model to the plant potentially commencing as early as 2026.
As part of Stellantis’ strategy to drive growth of the European market for battery electric vehicles, the new Opel C-SUV considered for manufacturing at Figueruelas — which is a long-time Opel production plant where more than 10 million Opel Corsa have been produced since 1982 — would also benefit from highly competitive LPMI-sourced components, which would significantly enhance affordability for European customers.
- Secondly, Stellantis and Leapmotor would also cooperate in the area of purchasing through LPMI, taking advantage of their considerable combined scale and strength. The objective would be to boost price competitiveness by leveraging the Chinese New Energy Vehicle ecosystem, while using European supply chain capabilities to strengthen resilience and accelerate time-to-market for new models.
- Finally, in a move to reinforce significantly the future of Villaverde, Madrid plant, the intended expansion may include the allocation of a new Leapmotor vehicle to the plant, including potential timing from the first half of 2028. This would be of particular relevance in light of the planned end of production of the Citroën C4 at this plant. At the same time, the plant’s ownership is under discussion for potential transfer to LPMI’s Spanish subsidiary. Manufacturing in Villaverde would be in line with Made-in-Europe upcoming requirements and the vehicles would be commercialized by LPMI in the European and Middle East and Africa (MEA) markets.
That looks like a solid plan.
“Leapmotor’s leading-edge technologies, combined with Stellantis’ global reach, deep regional roots and much-loved automotive brands, would make this a uniquely powerful partnership,” Zhu Jiangming, Leapmotor founder and CEO, added. “Our joint venture, Leapmotor International, has quickly shown its benefits for both partners and in less than three years, has seen us launch our brand on five continents and significantly grow our international reach and reputation.”
Indeed.
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