Stellantis considers potential electric vehicle collaboration 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, following in the footsteps of Volkswagen. One potential partner could be Zhejiang Leapmotor Technologies. Stellantis is exploring alliances in China to expand its presence in the world's largest EV market. The move comes as global automakers recognize the urgency of keeping up with domestic EV makers in China, who are taking market share.

FutureCar Staff Aug 26, 2023 4:27 PM PT

Stellantis considers potential 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 company is looking to strengthen its brand in the region by potentially using an EV platform from China for its EVs.

According to Bloomberg, 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 after reports of Volkswagen negotiating with Leapmotor to buy out a certain generation of its EV platform for its Jetta brand.

The partnership between Volkswagen and Leapmotor is said to be more similar to the Audi-SAIC tie-up, rather than the XPeng deal. In July, Volkswagen invested $700 million for a stake in XPeng and will use its 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 forming a business partnership, to expand its brand in the region. However, spokespeople from Stellantis, Volkswagen, and Leapmotor have declined to comment on the matter.

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

Stellantis, the parent company of Jeep, Ram, Chrysler, Fiat, Alfa Romeo, Maserati, and others, already has a joint venture in China with Dongfeng Motor Group. This 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. Leading automakers like Volkswagen have heavily relied on China for revenue. Recognizing the urgency, automakers such as VW, Toyota, GM, and now Stellantis are partnering with local automakers and suppliers to accelerate EV development in the region and meet the unique needs of the Chinese market. Failing to keep up with domestic EV makers could result in further market share loss for these global automakers.