A few days ago we learned the news of the Stellantis group’s association with the Chinese company Leapmotor. A strategic agreement that allows you to inject capital into the Asians, and gain a powerful partner. A shortcut that will also have Europe as the main objective for the new models of what will be the 15th brand of the Stellantis group.
This week we learned more details of an agreement that will involve the purchase of 20% of Leapmotor by Stellantis, which will also secure seats on the board of directors. An operation valued at 1,500 million euros.
With this signature, a new joint company will be created in Europe called Leapmotor International, which will be based in the Netherlands, and of which Stellantis will control 51%.
Its objective is the development of electric cars that, in addition to a high level of technology, also have competitive prices.
A collaboration that will allow, according to the directors of the European group, to be able to make real-time comparisons between their developments and those of the Chinese brand, to achieve synergies that accelerate the development and evolution of their products, while at the same time allowing market vehicles in a more agile way, helping to reduce design and production costs.
It will also make it easier, when the time comes, to locate Leapmotor production in Europe, which minimizes the risks that possible tariffs could have an impact in the event of changes in legislation in markets such as the EU.
The joint venture has set a goal of reaching sales of 500,000 units per year outside China by 2030, which will be added to the million units that Leapmotor intends to sell in China in the long term.
This will represent important support for a Leapmotor that in 2022 has achieved production of just 110,000 units in China, while this year between January and October of this year it accumulated 107,029 registrations, 13% more than the same period last year.
For its part, Stellantis has set a goal of reaching 300,000 units this year. Something that would mean maintaining the figures achieved last year, when 288,000 units were registered worldwide.
Opposition
It now remains to be known whether Stellantis will have access to all of Leapmotor’s technology, or, as in agreements such as those signed by other Western brands, such as Volkswagen and Xpeng, they will be able to access only part of it.
It also remains to be seen how a brand like Leapmotor will fit within the universe of Stellantis denominations. A group that has no less than 14 brands, which will be 15 with this acquisition. Something that makes it difficult not to step on the hose with other names, and that leads us to think that possibly, some of the current names, DS, Lancia, Alfa Romeo… may disappear in the medium term to avoid duplications that reduce profitability.
