Stellantis invests 1.5 billion euros in Chinese brand Leapmotors

China has already become the main protagonist of industrial activity in the motor world. Leapmotors has just sealed an important agreement with Stellantis to manufacture electric cars.

With a population of more than 1 billion inhabitants, China has become the world’s epicenter of car sales. The Asian giant has awakened from its slumber and, in just a couple of decades, has gone from not appearing on the list of the most commercial countries to becoming the industry leader. Its advanced technology and frenetic production pace seduce all brands. The agreements follow one another in a chain and the last one unites the Stellantis Group with Leapmotors. An agreement valued at more than 1.5 billion euros.

The French conglomerate, under the leadership of Carlos Tavares, has become one of the most important and influential groups in the industry. With 14 different brands under its umbrella, the consolidation of the PSA Group and FCA alliance has caused a great change. Despite this, the Chinese market has resisted for a long time, too long. Although they are already present with brands such as Citroën, Stellantis wants to expand its presence and, in the process, get something out of it along the way in the form of electrical technologies and developments.

Stellantis will take advantage of Leapmotor’s resources to introduce its brands in China

A few days ago the first rumors began to emerge about a possible negotiation. Today, both brands have confirmed the agreement. The European manufacturer gains access to the general shareholding of the Chinese company, acquiring 21% of the company for a value of 1.5 billion euros. In the same way, both companies, Stellantis and Leapmotor, will consolidate the formation of a new joint company based in Holland. The French will have control of 51% of this joint venture and the exclusive export rights, to sell and manufacture Leapmotor vehicles outside of China.

Stellantis invests leapmotors

Carlos Tavares has defended the deal as part of a larger strategy to penetrate the Asian market. “We haven’t had as much success in China as we wanted, so we prefer to rely on a Chinese partner. To win there it is better to do it with a local company.” For  Zhu Jiangming, CEO of Leapmotor, “this is a speed race. “We can help improve speed.” At the moment, no deadlines or possible partnerships have been revealed for the production of vehicles or the sharing of technologies that could lead to products destined for Europe. Surely at some point in this commercial history, we began to see Stellantis products developed in China.

This bilateral agreement is no surprise or novelty in the industry. Already in the recent past, we have seen similar businesses sealed. Volkswagen has taken over 5% of the XPeng brand to take advantage of its electric platform and resources. Audi has done the same with the SAIC Group, while Mercedes is in full negotiations with NIO to acquire rights and technologies. Amid this whirlwind of agreements and negotiations, the European Union has launched an investigation to determine whether Chinese brands are having an advantage in the electrical stage. It is not known how the possible sanctions may affect all these agreements.

The post Stellantis invests 1.5 billion euros in Chinese brand Leapmotors appeared first on Latest Car News.


Latest Car News

Comments

Post a Comment

Popular posts from this blog

New KIA e-Niro already has a price in Spain

Image
A few months after its official presentation, KIA opened the order books for the new e-Niro in Spain. The revamped compact SUV, which now sits on the K3 platform already seen in the latest Hyundai Elantra, is slightly longer (6.5 centimeters) than its predecessor and  debuts a completely revamped exterior and interior design . However, mechanically there are not too many changes. The second-generation KIA e-Niro is equipped with a 204 hp (150 kW) and 255 Nm engine coupled to the front axle, thanks to which it can complete the 0 to 100 km/h in 7.8 seconds. Its battery pack will have a capacity of 64.8 kWh, enough to approve a maximum of  463 km WLTP  (its official consumption is 15.9 kWh/100 km), a minimal improvement compared to the 455 km WLTP achieved by its predecessor which tells us that, despite the use of a new platform, the powertrain is likely to be very similar. As for the load, for the moment it has only been revealed that it  will take 43 minutes to go from 10 to 80%  conn
Read more

Peugeot 508 2023: Revealed with new design

Image
Peugeot has introduced the new 508 and station wagon version 508 SW. The design has become modern, as have the engines. We tell you what you need to know. Peugeot unveiled the new 508 and 508 SW. The mid-life facelift brings not only a new look but also new technology. The Peugeot Sport Engineered version has also been revised, and the alternative to the BMW M340i gets a little more power than before. 2023 Peugeot 508 prices and launch date The new Peugeot 508 will be launched in June this year, with deliveries starting shortly thereafter. The exact pricing has not yet been announced, but we expect it to be more expensive than the current model. The 508 in the standard version will probably cost around 47,000 euros, the station wagon is a bit more expensive. Exterior design The Peugeot 508 has always been a great family car, and this facelift brings it up to date for 2023. The most noticeable change can be seen at the front. The grille has been completely revised and now looks muc
Read more

VW thinks price war in China will lead to many bankruptcies

Image
Ralf Brandstätter, CEO of the Volkswagen Group in China , believes that the electric car market is “overheating”, with high investments and aggressive discounts that could threaten the stability of the sector. In particular, he points out that the pressure to which some manufacturers are subjected could lead to their demise. This situation mainly affects younger brands: according to the manager, many new players will urgently have to seek additional capital investment, or else they will go  bankrupt in the short term .  “We are facing a situation where the market is overheating. The consolidation of the playing field is in full swing. Although without making direct mention of Tesla, Brandstätter  is very critical of the price war that has rocked the Chinese market in recent months .  “Currently, there are more than 120 automakers in the [electric vehicle] market, and around 150 new models will be launched by 2023. Intense competition and high battery prices make them face strong econ
Read more