Multinational automaker Stellantis may soon produce low-cost electric vehicles of its Chinese partner Leapmotor in Italy, Automotive News Europe reports, citing a source with direct knowledge.
Stellantis’ Mirafiori factory to produce Leapmotor EVs
Stellantis is reportedly exploring the potential to produce up to 150,000 low-cost electric vehicle models of Chinese electric automaker Leapmotor in the iconic Fiat factory in Mirafiori, Turin.
Stellantis’ local dealers will also manage the sales of the Leapmotor EVs, with production launch planned in 2026 or 2027.
Local media also reported Stellantis’ Chief Executive’s remarks on Friday, stating that the company may produce Leapmotor EVs in the country if there are business prospects.
“If we have the opportunity because it makes economic sense to manufacture Leapmotors’ cars in Italy, of course we will do.”
Stellantis CEO Carlos Tavares
CEO Tavares further noted the essence of Stellantis’ authority to offer Leapmotors EVs to the EU from their joint venture it controls.
“It only depends on our cost competitiveness and our quality competitiveness.”
Stellantis CEO Carlos Tavares
Stellantis and Leapmotor’s partnership
Stellantis purchased a 21% stake in Leapmotor worth €1.5 billion. The two players then established the Dutch-based joint venture, “Leapmotor International.”
In October 2023, Stellantis Chief Financial Officer Natalie Knight referred to the Chinese automaker as the company’s “15th brand” during an analysts call to announce the new partnership.
The JV aims to sell 500,000 units in markets beyond China by the end of the decade, as per Stellantis’ Q3 2023 presentation on October 31.
Potential benefits
Stellantis’ Mirafiori factory is among the oldest automotive plants in Europe. It was also once the largest factory in the region as it handles the production of popular models like the original Fiat 600 and Fiat 500. As of now, it produces the Maserati models and the niche Fiat New 500 electric hatchback.
The potential addition of 150,000 Leapmotor EVs in the factory would aid Stellantis in hitting its pledge with the Italian government to deliver an output growth of 1 million units by 2030. It indicates a notable increase from just 750,000 in 2023.
In return, it will enable Leapmotors to bypass potential punitive tariffs the European Union may launch against Chinese electric vehicle imports. As we already know, the European Commission previously initiated a probe into Chinese government subsidies for electric vehicles amid their surge in the region. The move is part of the government’s efforts to protect its local brands against extremely cheap Chinese-made EVs.
