Stellantis Considers Electric Vehicle Collaboration in China

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【Summary】Jeep and Ram owner Stellantis is considering a partnership with a Chinese EV maker, following in the footsteps of Volkswagen. Stellantis is exploring alliances in China to expand its brand in the country's booming EV market. One potential partner could be Zhejiang Leapmotor Technologies. This move comes as global automakers recognize the urgency to keep up with domestic EV makers in China or risk losing market share.

FutureCar Staff Aug 26, 2023 9:30 AM PT

Stellantis Considers Electric Vehicle Collaboration in China

Stellantis, the owner of Jeep and Ram, is considering a partnership with a Chinese EV maker, following in the footsteps of Volkswagen. The goal is to strengthen Stellantis' brand in the Chinese market by potentially utilizing an EV platform from China.

According to Bloomberg, sources familiar with the matter have revealed that Stellantis is exploring alliances in China 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 of Volkswagen negotiating with Leapmotor to acquire a certain generation of its EV platform for its Jetta brand.

While the Volkswagen EV partnership is said to be more similar to the Audi-SAIC tie-up, Stellantis is weighing its options, including investing in a Chinese EV maker or forming a business partnership to expand its presence in the region.

It is worth noting that Stellantis CEO Carlos Tavares has been promoting an "asset-light" strategy, especially after closing its only Jeep factory in China last year. This strategy aims to offset the market share loss experienced by rivals like Volkswagen and GM to domestic EV manufacturers.

Stellantis, which encompasses brands such as Jeep, Ram, Chrysler, Fiat, Alfa Romeo, and Maserati, currently has a joint venture with Dongfeng Motor Group in China, through which it sells Peugeot and Citroen cars. However, the company may be seeking to further expand its presence in the Chinese market through a new partnership.

China is the largest EV market globally, with significant sales figures reported. In June alone, over 535,000 battery electric vehicles were sold in China, according to data from the China Association of Automobile Manufacturers (CAAM). Between January and June, a total of 2.55 million EVs were sold in the region. Recognizing the urgency to keep up with domestic EV makers like BYD and Tesla, automakers such as Volkswagen, Toyota, GM, and now Stellantis are realizing the importance of partnering with local automakers and suppliers to accelerate EV development and cater to the unique needs of the Chinese market.