Stellantis Gives China’s Leapmotor a Plant and EV in Europe

0vd9xrf6tlk6pr70]q3zjegb_media_dl_1.png Dataforce

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(Bloomberg) — Stellantis NV is giving China’s Leapmotor access to a plant in Spain, and the partners will build an EV together to deepen ties as the maker of Opel and Fiat cars seeks to shore up its European operations.

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Opel engineers have already started working with their Leapmotor counterparts in China, the marque’s Chief Executive Officer Florian Huettl said in an interview. They’re developing a mid-size sport utility vehicle that will be built in Zaragoza, Spain to compete with cars like Volkswagen AG’s Tiguan and Hyundai’s Tucson.

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The move is one of the first instances of a major Western automaker relying on Chinese technology to bolster its lineup in Europe. Production of the SUV could begin in 2028, the company said Friday.

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Separately, the sprawling carmaker, which also owns the Jeep, Ram and Peugeot brands, is discussing transferring ownership of a site in Madrid to its venture with Leapmotor. Stellantis holds a 51% stake in that JV, which so far focused on distribution.

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The changes could pave the way for production of multiple Leapmotor models in Spain, helping the companies meet stricter European Union rules on local manufacturing. The EU is tightening rules on local content for electric vehicles alongside tariffs on Chinese imports, pushing automakers to localize production and secure lower-cost technology as competition intensifies.

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Leapmotor may produce its B10 SUV at the Zaragoza plant as early as 2026, Stellantis said. The partners will also deepen cooperation on purchasing to cut costs by combining China’s EV supply-chain strengths with European manufacturing. Spain has become an attractive carmaking location because of relatively low labor costs and access to cheap renewable energy.

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The broadening of the partnership reflects mounting pressure on European carmakers to cut costs and speed up development as Chinese rivals expand in the region. It also highlights a shift in Europe’s auto industry, with manufacturers from China moving into core engineering after building a lead on EV technology and software. Renault SA’s new electric Twingo city car, for instance, was developed in Shanghai.

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“This is clearly a first step,” said Michael Dean, an analyst at Bloomberg Intelligence. “It would make sense to expand the Leapmotor partnership to other group brands as competition will only deepen in Europe.”

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Last week, VW CEO Oliver Blume said he was open to sharing factories at its European plants with Chinese automaking partners. Like Stellantis, the manufacturer is grappling with high costs and underused factories in the region.

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Leapmotor’s team will take the lead on the SUV’s electric drivetrain and battery systems, while Opel will have greater focus on design and driving dynamics. The car is expected to take around 24 months to develop, a faster pace that reflects the speed at which Chinese manufacturers can create a new model.