Stellantis, the Italian-French automaker, is reportedly considering jointly developing an electric sport utility vehicle (SUV) with Chinese EV maker Leapmotor. It would be the first case of Chinese EV technology being applied to a European-brand vehicle, drawing interest in Korea over whether the two companies' jointly developed model will also be sold domestically.
According to foreign media on the 16th, Reuters reported on the 8th (local time) that Stellantis is in talks with Leapmotor to jointly develop an electric SUV and is considering producing it at its Zaragoza plant in Spain. Under the plan, Opel, Stellantis' German brand, would handle the exterior design, while Leapmotor would supply technologies such as electronic and electrical components.
Stellantis has been collaborating with Leapmotor in electric vehicle production. Until now, Leapmotor's T03 and B10 have been produced at Stellantis' plants in Poland and Spain, but the cooperation is expanding to joint vehicle development.
Cost savings are cited as the reason for Stellantis and Leapmotor expanding their cooperation. If the joint development plan is finalized, Stellantis can reduce the cost and time needed to develop new EVs. For Leapmotor, it would be a major benefit as it could avoid tariffs of about 17.8% to 45.3% that the European Union imposes on Chinese-made EVs.
Stellantis invested about 2.5 trillion won in 2023 to acquire a 20% equity stake in Leapmotor. It also established Leapmotor International, a joint venture responsible for Leapmotor's vehicle development and sales outside China, securing a 51% stake. Through the joint venture, Leapmotor sold about 7,200 units of its core small SUV, the B10, in Germany last year.
Along with joint vehicle development, Stellantis is also pushing plans to produce EVs with Leapmotor outside Europe. According to Bloomberg, Stellantis and Leapmotor have agreed to jointly produce EVs at a plant in Canada. Production is also planned in a semi-knocked-down format in Brazil and Malaysia.
There is growing interest in the imported car industry over whether the expanded partnership between the two companies will lead to Leapmotor's entry into Korea. Stellantis Korea also showed moves in the second half of 2024 that took into account the possibility of Leapmotor's launch in Korea. At the time, it was limited to visiting Leapmotor's headquarters with dealers to tour production facilities, but discussions have recently progressed concretely, including reviewing profitability with Stellantis' headquarters.
BYD, a Chinese EV maker that entered Korea in January last year, surpassed a cumulative 10,000 units sold within a year and is cruising. This year, it sold 3,968 units in the first quarter alone. Following BYD's successful landing, other Chinese EV makers, including Zeekr, the premium brand of Geely Automobile Holdings, are preparing domestic sales.
Stellantis Korea believes the smooth establishment of Chinese EVs in the domestic market could help lower the entry barriers for Leapmotor. A Stellantis Korea official said, "We are sharing positive developments in the Korean market regarding Chinese brands and are at the stage of concrete review," adding, "We are considering various ways to achieve revenue."