Jeep owner Stellantis considers collaboration with Chinese EV company

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【Summary】Jeep and Ram owner Stellantis is considering a partnership with a Chinese EV maker, following in Volkswagen's footsteps. Stellantis is exploring alliances in China to expand its brand in the country's largest EV market. One potential partner could be Zhejiang Leapmotor Technologies. This move comes after Volkswagen's recent partnership with Leapmotor and its investment in XPeng. Stellantis aims to strengthen its presence in China and keep up with domestic EV makers.

FutureCar Staff Aug 23, 2023 4:15 PM PT

Jeep owner Stellantis considers collaboration with Chinese EV company

Stellantis, the owner of Jeep and Ram, is considering a potential partnership with a Chinese electric vehicle (EV) maker, following in the footsteps of Volkswagen. The aim of this partnership would be to strengthen Stellantis' brand in the Chinese market by utilizing an EV platform from China.

According to Bloomberg, sources familiar with the matter have revealed that Stellantis is exploring alliances in China in order to expand its brand in the world's largest EV market. One potential partner being considered is Zhejiang Leapmotor Technologies (Leapmotor). This news comes shortly after reports that Volkswagen was in negotiations with Leapmotor to acquire a certain generation of its EV platform for its Jetta brand.

The local report suggests that the partnership between Volkswagen and Leapmotor would be more similar to the Audi-SAIC tie-up rather than the XPeng deal. In July, Volkswagen invested $700 million for a 4.99% stake in XPeng and plans to use their EV platform to launch two new electric models.

Stellantis is now considering its options, which include investing in a Chinese EV maker or establishing a business partnership to expand its brand in the region. Both Stellantis and Volkswagen declined to comment on these reports, while Leapmotor has not yet responded.

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 counter the market share loss experienced by rivals like Volkswagen and GM to domestic EV makers.

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

China is the largest EV market globally, with over 535,000 battery electric vehicles sold in June alone, according to data from the China Association of Automobile Manufacturers (CAAM). From January to June, a total of 2.55 million EVs were sold in the region. Global automakers such as Volkswagen, Toyota, GM, and now Stellantis have recognized the urgency of keeping up with domestic EV makers like BYD and Tesla in order to avoid being squeezed out of the market. Partnering with local automakers and suppliers can help accelerate EV development in the region while catering to the unique needs of the Chinese market.