Stellantis is considering adopting Leapmotor's EV tech for European models

Stellantis is considering adopting electric vehicle (EV) technology from its Chinese partner Leapmotor to reduce costs for its mass-market European brands including Fiat, Opel, and Peugeot, Bloomberg reported Thursday, citing people familiar with the matter 

The potential move would mark the first time a major Western automaker relies on a Chinese company's vehicle architecture and software to support its European models. The sources said Stellantis is evaluating expanding the scope of its joint venture with Leapmotor to access the latter's more advanced battery and electric powertrain technologies. 

The parties aim to finalize an agreement this year, though negotiations remain in early stages and must overcome regulatory hurdles including data protection concerns and US restrictions on connected vehicles with Chinese ties, the report noted. This consideration for deepening cooperation comes as Stellantis navigates a painful strategic restructuring. 

Facing intense competition in Europe from Chinese automakers like BYD and local rivals like Volkswagen and Renault in the European market, adopting Leapmotor's technology would save Stellantis substantial R&D expenses and provide a shortcut to enhancing product competitiveness, Bloomberg noted. 

The partnership between Stellantis and Leapmotor began in 2023 when the former invested EUR 1.5 billion to acquire about 20% of Leapmotor's shares, now diluted to 15%. In May 2024, the two parties established Leapmotor International, a joint venture with Stellantis holding a 51% stake. Currently, Stellantis sells models like the Leapmotor C10 through its European dealer network and is accelerating the brand's global expansion. 

Founded in 2015, Leapmotor was one of the first new car-making forces in China and is expanding overseas in partnership with Stellantis, Europe's second-largest carmaker by sales.