Franco-Italian automaker Stellantis and China’s Leapmotor have announced plans to start joint car production in Europe, marking a shift from distribution to manufacturing in their partnership.
The companies will produce two electric vehicle models in Spain, including Leapmotor’s B10 SUV and a new jointly developed C-segment SUV under the Opel brand at Stellantis’ Zaragoza plant. The move is expected to strengthen local production and expand the presence of affordable electric vehicles in the European market, The Economic Times reported.
The announcement comes ahead of Stellantis’ upcoming business plan, as CEO Antonio Filosa looks to regain market share in North America and Europe and improve overall performance.
Boost to EV Production and Localisation
The partnership aims to make better use of existing factory capacity in Europe while giving Leapmotor faster access to local manufacturing. It is also expected to help the Chinese automaker avoid European Union tariffs on imported electric vehicles.
The companies are considering expanding the collaboration further, including plans to allocate additional Leapmotor models to Stellantis’ Madrid plant from 2028 and possibly transferring ownership of the facility to their joint venture, Leapmotor International.
Stellantis currently holds a 51% stake in the joint venture, while Leapmotor owns 49%. The automaker had earlier acquired a 21% stake in Leapmotor in 2023 to strengthen its position in the electric vehicle segment.
Technology and Cost Advantages
According to Florian Huettl, the new Opel model will combine Leapmotor’s electric platform and battery technology with Opel’s design and engineering capabilities. The vehicle is expected to be developed in less than two years.
The companies also plan to collaborate on sourcing components through their joint venture, aiming to reduce costs by leveraging China’s electric vehicle supply chain while maintaining European production standards.
Industry observers say the deal could pave the way for more partnerships between European and Chinese automakers, as companies look to balance cost efficiency with local manufacturing requirements in a rapidly growing EV market.
