Stellantis is exploring the adoption of electric vehicle technology from its Chinese partner Leapmotor to lower development costs for its mass-market European brands, including Fiat, Opel and Peugeot, according to people familiar with the matter. If approved, this would be the first instance of a major Western automaker using a Chinese company’s vehicle architecture and software in its European offerings.
As part of the review, Stellantis is considering expanding the scope of its joint venture with Leapmotor to gain access to more advanced battery systems and electric powertrain components. Representatives from both companies hope to finalize a deal later this year, though discussions are in the early stages and must address regulatory requirements, such as data protection rules and U.S. restrictions on connected vehicles with Chinese ties.
The move comes amid a broader strategic restructuring at Stellantis, which recently recorded asset impairments and charges totaling €22.2 billion to offset declining market share and profitability. Facing heightened competition in Europe from established domestic rivals and rapidly growing Chinese automakers, leveraging Leapmotor’s existing technology could enable Stellantis to save substantial R&D expenditure while speeding up enhancements to its product lineup.
The partnership between the two companies began in 2023, when Stellantis invested €1.5 billion to acquire roughly 20 percent of Leapmotor’s equity, now diluted to 15 percent. In May 2024, the two firms launched Leapmotor International, a joint venture in which Stellantis holds a 51 percent stake.
Under the current arrangement, Stellantis offers the Leapmotor C10 model through its European dealer network and is supporting the brand’s global expansion. Production of the C10 has already commenced in Malaysia, and Leapmotor vehicles have been introduced in markets such as South Africa.
Source: CnEVPost
