Stellantis is considering a partnership with a Chinese manufacturer

Business is bad for Stellantis in China, but so are many other groups, starting with Volkswagen. To regain some momentum in this now very competitive market with local competition, Stellantis plans to partner with a Chinese electric vehicle company according to journalists from Bloomberg.

Stellantis would thus be working on a partnership with Zhejiang Leapmotor Technologies according to several sources internal to the group.

A Stellantis vs Volkswagen battle coming in China?

Following in the footsteps of other groups, Stellantis is evaluating several options, such as an investment in a local manufacturer of electric vehicles and a commercial partnership that would help it develop in China. For the moment, no agreement has been reached and discussions are still ongoing.

Other automakers, including Volkswagen Group, have also expressed interest in a potential tie-up with Leapmotor. Reuters journalists have also announced discussions between the German group and Leapmotor at the beginning of the month.

A strategy that is becoming more democratic

The partnership would fit into the China asset relief strategy that Stellantis CEO Carlos Tavares announced following the shutdown of the Jeep factory in China last year. Carlos Tavares said last July that he was happy with his decision, also believing that rivals Volkswagen and General Motors were ” under pressure “ in China, in particular because of competition from local manufacturers.

Stellantis still has a joint venture with Dongfeng Motor Group to sell Peugeots and Citroëns in China. Meanwhile, Volkswagen last month said it plans to invest $700 million in Xpeng to jointly develop electric vehicles in China.

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