Stellantis N.V. is investing approximately €1.5 billion in Leapmotor, obtaining a 20% stake in the company. As a result, Stellantis will become a significant shareholder of Leapmotor, and both companies will initiate the “Leapmotor International” joint venture. This venture will be spearheaded by Stellantis with a 51/49 split and is set to focus on promoting and manufacturing Leapmotor products outside Greater China.
Why It Matters
This partnership establishes an unprecedented global electric vehicle alliance between a dominant automaker and a Chinese NEV (new energy vehicle) OEM. The collaboration is strategically positioned to enhance Leapmotor’s market presence in China, the world’s largest automotive market. Concurrently, Stellantis aims to leverage its global foothold to amplify Leapmotor sales, beginning in Europe.
Key Points
- Leapmotor is a rapidly growing Chinese NEV technology leader, known for its innovative vertical integration model and comprehensive in-house R&D and manufacturing capabilities.
- Stellantis, a global mobility giant, ranks among the world’s top profitable automakers.
- Through the partnership, Stellantis will utilize Leapmotor’s advanced EV ecosystem in China to achieve the Dare Forward 2030 electrification targets.
- Stellantis will acquire two seats on Leapmotor’s Board of Directors.
- Shipments from the joint venture are anticipated to commence in the latter half of 2024.
Bottom Line
This joint venture positions both to further penetrate the EV market. With Stellantis’ investment, Leapmotor stands to gain a significant boost in its global sales outreach, especially in Europe. Leapmotor’s robust EV offerings are seen as complementary to Stellantis’ vast technology pool and iconic brand collection, promising more affordable mobility solutions for global customers. This collaboration exemplifies the evolving automotive industry’s trend, where traditional manufacturers are joining hands with innovative start-ups to navigate the electrified future.
