Jeep owner considers potential partnership for Chinese EVs

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【Summary】Jeep and Ram owner Stellantis is considering partnering with a Chinese EV maker, possibly Zhejiang Leapmotor Technologies, to expand its brand in China's growing EV market. This follows in the footsteps of Volkswagen, which recently invested in XPeng and formed a partnership with SAIC. Stellantis aims to strengthen its presence in China and keep up with domestic EV makers.

FutureCar Staff Aug 24, 2023 6:16 AM PT

Jeep owner considers potential partnership for Chinese EVs

Stellantis, the owner of Jeep and Ram, is considering a partnership with a Chinese EV maker, following in the footsteps of Volkswagen. The company is looking to strengthen its brand in the Chinese market by potentially using an EV platform from China for its electric vehicles.

According to sources familiar with the matter, Stellantis is exploring alliances in China to expand its brand in the world's largest EV market. One potential partner could be Zhejiang Leapmotor Technologies. This news comes shortly after reports of Volkswagen negotiating with Leapmotor to buy out a certain generation of its EV platform for its Jetta brand.

The Volkswagen EV partnership is said to be more similar to the Audi-SAIC tie-up rather than the XPeng deal. Volkswagen recently invested $700 million for a stake in XPeng and will use its platform for two new electric models. Audi, on the other hand, confirmed a partnership with Chinese state-owned SAIC to accelerate EV development in the region.

Stellantis is now considering its options, which include investing in a Chinese EV maker or forming a business partnership to expand its brand in the region. However, representatives from Stellantis, Volkswagen, and Leapmotor declined to comment on the matter.

After closing its only Jeep factory in China last year, Stellantis CEO Carlos Tavares has been promoting an "asset-light" strategy. This strategy aims to regain market share lost to domestic EV makers like Volkswagen and GM.

While Stellantis does have a joint venture in China with Dongfeng Motor Group, selling Peugeot and Citroen cars, the company may be looking to further expand its presence in the Chinese market through a new partnership.

China is the largest EV market globally, with over 535,000 battery electric vehicles sold in June alone. Leading global automakers like Volkswagen have relied on China for a significant portion of their revenue. As domestic EV makers like BYD and Tesla continue to gain market share, automakers such as Stellantis recognize the urgency to keep up. Partnering with local automakers and suppliers can help speed up EV development in the region and meet the unique needs of the Chinese market.