Stellantis, a complete carmaker from Italy and France, is reportedly reviewing a plan to jointly develop an electric sport utility vehicle (SUV) with Leapmotor, a Chinese electric vehicle manufacturer. This would be the first case of Chinese EV technology being applied to a European brand vehicle, and there is growing interest in Korea over whether the 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 for joint development of an electric SUV and is considering producing it at the Zaragoza plant in Spain. The plan is for Opel, a German brand under Stellantis, to handle the vehicle's exterior, while Leapmotor supplies technologies such as electronic and electrical components.
Stellantis has been cooperating 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 into joint vehicle development.
Cost savings are cited as the reason for the expanded cooperation between Stellantis and Leapmotor. If the joint development plan is finalized, Stellantis can reduce expense and time for developing new EVs. From Leapmotor's perspective, it can avoid tariffs of about 17.8% to 45.3% that the European Union (EU) imposes on Chinese-made EVs, also gaining a major benefit.
In 2023, Stellantis invested about 2.5 trillion won to acquire a 20% equity stake in Leapmotor. It also established the joint venture Leapmotor International, which is responsible for developing and selling Leapmotor vehicles 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 a plan to team up with Leapmotor to produce EVs outside Europe. According to Bloomberg, Stellantis and Leapmotor have decided to jointly produce EVs at a plant in Canada. Production in semi-knockdown form is also planned in Brazil and Malaysia.
The expansion of the two companies' cooperation is drawing growing interest in the imported-car industry over whether it will lead to Leapmotor's entry into Korea. Stellantis Korea also took steps in the second half of 2024 with the possibility of launching Leapmotor in Korea in mind. At the time, it was limited to visiting Leapmotor's headquarters with dealers to tour production facilities, but recently discussions have progressed concretely, including reviewing profitability with Stellantis' headquarters.
BYD, a Chinese EV maker that entered the Korean market in January last year, surpassed a cumulative 10,000 units in sales within one year and is sailing smoothly. This year alone, it sold 3,968 units in the first quarter. Following BYD's successful landing, other Chinese EV companies, including Zeekr, the premium brand of Geely Automobile Holdings, are also preparing for domestic sales.
Stellantis Korea sees the smooth settlement of Chinese EVs in the domestic market as a factor that could lower the barriers to Leapmotor's entry. A Stellantis Korea official said, "We are sharing positive developments in the Korean market regarding Chinese brands and are at the stage of reviewing them in detail," adding, "We are considering various ways to generate revenue."