Stellantis CEO Carlos Tavares and Leapmotor Founder and CEO Zhu Jiangming shake hands regarding new partnerships between their companies.
stellantis
Automobile manufacturer stellantis expects to quickly increase sales of Chinese-made electric vehicles outside the country through a new joint venture with Leapmotor, which will begin later this year, according to the two companies.
The companies said Tuesday that starting in September, sales of Chinese-made Leapmotor vehicles will begin through Stellantis' distribution networks, including dealers in Europe: France, Italy, Germany, Netherlands, Spain, Portugal, Belgium , Greece and Romania.
Those markets will be followed by the Middle East and Africa, India and Asia Pacific, and South America by the end of 2024, the companies said.
Expansion plans do not currently include U.S. distribution, Stellantis CEO Carlos Tavares said Tuesday following a news conference in Hangzhou, China, where Leapmotor is headquartered. This is due, in part, to new US tariffs on electric vehicles made in China, Tavares said, citing other reasons as well.
The Biden administration on Tuesday announced stiff new tariff rates on billions worth of Chinese imports, including quadrupling tariffs on imported Chinese electric vehicles, from 25% to 100%.
“The Chinese supply in the US market is very limited, so it is not a priority for us,” Tavares said. “There is a lot in Europe because we see that Europe has a very different approach to this problem… It seems that the United States is adopting very strong protectionism. Whereas, at the moment, I see that Europe is keeping the market reasonably open.”
The joint venture's expansion plans include at least six electric vehicles by 2027, according to a presentation from Stellantis and Leapmotor. The cars, initially economy vehicles, are expected to complement Stellantis' current vehicle lineup, the companies said.
The announcement comes amid rising geopolitical tensions over Chinese-made electric vehicles in the United States, Europe and other regions. Many in and around the auto industry fear that less expensive vehicles made in China will flood the markets, undermining domestically produced electric vehicles.
“From Stellantis' perspective, our position is to compete. We compete with Chinese automakers and we compete as hard as we can because it's the best way to learn. It's the best way to stay in shape for the global race we're in now. . part,” Tavares said.
Tavares said Tuesday that Chinese automakers, which he previously called Stellantis' biggest competitors, are expected to grow rapidly internationally, with or without assistance from joint ventures.
“Whether I like it or not, with or without me, Leapmotor would have been in Europe anyway… maybe not as fast, maybe not as hard, but they would have gone to Europe,” Tavares said. “What I'm doing is just trying to be opportunistic in the face of a dynamic created by Chinese automakers.”
Chinese companies accounted for 8% of all-electric vehicle sales in Europe in September and could increase their share to 15% by 2025, the European Union said in October 2023. The EU believes Chinese electric vehicles are undercutting prices of local models by approximately 20%. % in the European market.
Employees work on the assembly line of the C11 electric SUV at a factory of Chinese electric vehicle startup Leapmotor on April 26, 2023 in Jinhua, China's Zhejiang province.
VCG | China Visual Group | fake images
The influx of Chinese electric vehicles has prompted the European Union to launch government support for the industry.
“The partnership between Leapmotor and Stellantis demonstrates a high level of efficiency, opening a new chapter in the global integration of China's smart electric vehicle industry,” Leapmotor founder, chairman and CEO Jiangming Zhu said in a statement. “We believe this cooperation can give Leapmotor a boost to become a respected, world-class smart electric vehicle company.”
The companies declined to disclose sales volume expectations for Leapmotor vehicles sold through Stellantis' sales network, which is expected to grow from 200 locations to 500 by 2026. Leapmotor reported deliveries of 144,155 vehicles in 2023, a increase of approximately 30% compared to the previous year. year.
Stellantis owns 51% of the joint venture with Leapmotor, announced earlier this year and which includes a €1.5 billion investment in Leapmotor for a roughly 21% stake in the company.
As part of the agreement, Stellantis has exclusive rights to export, sell, and manufacture Leapmotor products outside of Greater China.
