Stellantis considers partnership for Chinese electric vehicles

author: FutureCar Staff    

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 and may utilize an EV platform from China for its electric vehicles.

According to Bloomberg's sources, Stellantis is exploring alliances in China to expand its presence in the world's largest EV market. One potential partner could be Zhejiang Leapmotor Technologies (Leapmotor). This news comes after reports of Volkswagen negotiating 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 will use their platform for two new electric models. Audi also confirmed a partnership with Chinese state-owned SAIC to accelerate EV development in the region.

Stellantis is considering various options, including investing in a Chinese EV maker or establishing a business partnership to expand its brand in the region. However, representatives from Stellantis and Volkswagen declined to comment, and Leapmotor has not responded immediately.

After closing its only Jeep factory in China last year, Stellantis CEO Carlos Tavares has promoted an "asset-light" strategy. This strategy aims to address the market share loss experienced by rivals like Volkswagen and GM to domestic EV makers.

Stellantis, the parent company of various automotive brands, including Jeep, Ram, and Fiat, currently has a joint venture with Dongfeng Motor Group in China. The joint venture sells Peugeot and Citroen cars in China, but Stellantis may be seeking to expand its presence 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, over 2.55 million EVs were sold in the region. Leading global automakers, such as Volkswagen, heavily rely on the Chinese market for revenue.

Automakers like VW, Toyota, GM, and now Stellantis are recognizing the urgency to keep up with domestic EV makers like BYD and Tesla, who are gaining market share. Partnering with local automakers and suppliers can help accelerate EV development in the region and cater to the unique needs of the Chinese market.

FutureCar Staff