Stellantis considers potential partnership for Chinese electric vehicles

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【Summary】Stellantis, the owner of Jeep and Ram, is considering partnering with a Chinese EV maker to strengthen its brand and expand in the Chinese market, following in the footsteps of Volkswagen. 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, the world's largest EV market.

FutureCar Staff Aug 23, 2023 11:16 PM PT

Stellantis considers potential partnership for Chinese electric vehicles

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 using an EV platform from China for their EVs.

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 that has been mentioned is Zhejiang Leapmotor Technologies. This news comes shortly after reports of Volkswagen negotiating with Leapmotor to acquire a generation of its EV platform for the Jetta brand. However, the Volkswagen partnership 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 4.99% stake in XPeng and will be using their Edward platform for two new electric models. Audi also confirmed a partnership with Chinese state-owned SAIC to accelerate EV development in the region. Now, Stellantis is considering its options, including investing in a Chinese EV maker or forming a business partnership to expand its brand in China.

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 regain market share lost to domestic EV makers like Volkswagen and GM.

Stellantis already has a joint venture with Dongfeng Motor Group in China, where they sell Peugeot and Citroen cars. However, 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 while meeting the unique needs of the Chinese market.