China's LeapMotor Partners with Stellantis to Produce EVs in Europe

19 Jun, 2024

China's LeapMotor Partners with Stellantis to Produce EVs in Europe

Stellantis is partnering with Chinese electric vehicle manufacturer LeapMotor to produce electric cars at the Tychy plant in Poland. This joint venture aims to bypass the new EU import tariffs of up to 38% on Chinese EVs, which were implemented following an anti-subsidy inquiry. The tariffs have led to protests from German automakers and prompted European carmakers to develop new strategies.

By manufacturing EVs locally, Stellantis, which includes brands such as Citroën, Fiat, Jeep, and Peugeot, plans to avoid these tariffs. Additionally, Stellantis is collaborating with Chinese lithium-ion battery manufacturer CATL to lower battery costs and provide more affordable EVs. The T03 EV is expected to launch in nine European countries, including Germany, in September.

Stellantis CEO Carlos Tavares highlighted that the new tariffs correct a lack of competitiveness among European carmakers, making local production more logical than importing. As part of this strategy, some LeapMotor products will be assembled in Europe. Differentiated tariffs have led other Chinese automakers like BYD and Chery to plan local production in Hungary and Spain, respectively. The joint venture between Stellantis and LeapMotor aims to release at least six EV models by 2027.