Stellantis in talks with Xiaomi and Xpeng on potential Europe partnerships

Stellantis NV is exploring expanded collaboration with Chinese electric vehicle (EV) manufacturer Leapmotor to leverage its advanced battery and powertrain technology for cost reduction across its European brands, including Fiat, Opel, and Peugeot according to Detroit News. The automaker is considering broadening its existing joint venture, Leapmotor International, to integrate Leapmotor's vehicle architecture and software, potentially marking the first time a major Western automaker would adopt Chinese technology for European models. Discussions are preliminary but aim to finalize terms by year-end, despite regulatory challenges such as U.S. restrictions on connected vehicles with Chinese-linked technologies starting in 2027.

This strategic shift follows Stellantis' recent €22.2 billion writedowns and restructuring efforts to address declining market share and profitability according to Detroit News. By adopting Leapmotor's cost-efficient EV platforms, Stellantis seeks to accelerate its response to competitive pressures from Chinese rivals like BYD and MG, as well as European incumbents such as Volkswagen AG and Renault SA according to Bloomberg. Meanwhile, Volkswagen has also partnered with Chinese firms, including Xpeng Inc., to utilize their EV platforms, though such models remain China-specific according to Detroit News.

Stellantis' venture with Leapmotor, established in 2023, includes selling Leapmotor models like the C10 SUV through its European dealerships. The company has diluted its stake in Leapmotor to 15% from 20% but maintains a 51% controlling interest in the joint venture. As CEO Antonio Filosa prepares to outline strategic priorities in May, Stellantis faces the dual challenge of navigating geopolitical trade barriers while revitalizing its European operations amid overcapacity and intensifying competition according to Bloomberg.

( Detroit News: Detroit News, Bloomberg
( Bloomberg: Bloomberg
( Yahoo Finance: Yahoo Finance