Jeep owner considers potential EV partnership in China

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【Summary】Jeep owner Stellantis is considering a partnership with a Chinese EV maker to strengthen its brand in China's EV market. The potential partner could be Zhejiang Leapmotor Technologies. This move follows Volkswagen's recent partnership with Leapmotor and their investment in XPeng. Stellantis aims to expand its presence in China and compete with domestic EV makers like BYD and Tesla.

FutureCar Staff Aug 25, 2023 9:37 AM PT

Jeep owner considers potential EV partnership in China

Stellantis, the owner of Jeep and Ram, is considering a partnership with a Chinese electric vehicle (EV) maker in an effort to strengthen its brand in the region. This move follows in the footsteps of Volkswagen, who recently announced their own Chinese EV partnership.

According to sources familiar with the matter, Stellantis is exploring alliances in China to expand its presence in the world's largest EV market. One potential partner for Stellantis could be Zhejiang Leapmotor Technologies, the same company that Volkswagen was reportedly negotiating with for their Jetta brand.

While the details of the potential partnership are still unclear, it is believed that Stellantis is considering options such as investing in a Chinese EV maker or forming a business partnership. However, representatives from Stellantis, Volkswagen, and Leapmotor have declined to comment on the matter.

Stellantis CEO Carlos Tavares has been promoting an "asset-light" strategy after closing its only Jeep factory in China last year. This strategy aims to expand the brand's presence without heavy investments in manufacturing facilities. Stellantis currently has a joint venture with Dongfeng Motor Group in China, but they may be looking for additional partnerships to further expand their presence in the country.

China's EV market is the largest in the world, with over 535,000 battery electric vehicles sold in June alone. Global automakers like Volkswagen, Toyota, and GM have relied on China for a significant portion of their revenue. However, domestic EV makers like BYD and Tesla are gaining market share, putting pressure on international automakers to keep up.

Partnering with local automakers and suppliers in China can help accelerate EV development in the region while catering to the unique needs of the Chinese market. By forming alliances with Chinese EV makers, companies like Stellantis can ensure their competitiveness in this rapidly growing market.