The succession between Carlos Tavares and Antonio Filosa has led Stellantis to deeply revise its industrial plans (how deeply will only be known on May 21 during the Investor Day in the US), but one aspect of the previous management seems to have survived: the importance for the Franco-Italian Group of the Chinese electric car manufacturer Leapmotor.
HOW LEAPMOTOR IS DOING
In recent hours, Stellantis itself has proudly announced the latest data regarding Leapmotor: “in March it registered 50,029 vehicles delivered, including domestic market and exports, with a growth of 34.87% compared to the same period last year. In the first quarter, total deliveries reached 110,155 vehicles, still including domestic market and export, equal to an increase of 25.82% year-on-year.”
EV CAR SLOWS DOWN BUT STELLANTIS DOES NOT STEP BACK FROM LEAPMOTOR
Stellantis, which under Tavares had acquired approximately 20% of Leapmotor’s capital to at least partly recover the technical gap compared to the Dragon’s electric cars – also holds 51% of the joint venture dedicated to international activities (in fact, the Western manufacturer committed to exploiting its channels to export the Asian partner) and does not seem willing to downsize its agreements despite the plug-in vehicle sales experiencing a stall. Especially because the Hangzhou ally brings technological know-how that today underpins many highly sought-after options by users.
IS STELLANTIS BRINGING LEAPMOTOR TO CANADA?
But above all, this partnership can still be useful to fill strategic pieces or, as might be the case in Canada if rumors prove true, even resolve dangerous diplomatic tensions. It is now well known, in fact, that Stellantis, to comply with the protectionist whims of US President Donald Trump, started transferring the production of cars made in Canada destined for the US market directly to US factories (specifically in a plant that had been hastily reopened after the decision to shut it down to avoid new strikes by the powerful UAW union).
Ottawa did not take it well at all and threatened heavy legal countermeasures. The solution identified by the European manufacturer would therefore be to replace production with that of the Chinese partner, Leapmotor. In this way, the Asian ally would enter the New World (though the US would still be closed off to cars made in China), moreover in a market open to electric cars, and Canada would not suffer the employment fallout from the shutdown of its plants.
A WIN-WIN CHOICE?
A brilliant strategic choice, although it remains to be confirmed and, if so, orchestrated. Canadians do not seem particularly convinced, and this is because there are no assurances that Leapmotor production would replace the previous one 1:1. In fact, given the difficulties encountered by electric cars recently, it would be hard to believe that Stellantis wants to invest heavily in it, although it would still be supported in the initiative by the Chinese capital of the partner.
LEAPMOTORS ARRIVE IN BRAZIL
But there is another New World market ready to welcome Stellantis’ Chinese cars: Brazil. While those in Canada are still talks far from confirmed, it is now official that the Leapmotor B10 and C10 will soon have a new home: the Goiana hub, in the Brazilian state of Pernambuco.
It is a hub that in total generates the astronomical figure of 14,700 jobs between direct and indirect employees, produces 280,000 vehicles per year (thus close to the entire annual Italian production now below 380,000 units, according to the dramatic data from Fim – Cisl relating to 2025) and last August celebrated its 10 years of activity (it was opened due to the saturation of the main Betim plant) and the milestone of 2 million vehicles produced.
In the South American country that hosts immense sugarcane plantations, the Old Continent Group is advancing studies on flex-fuel engines (also fueled by ethanol) to be combined even in hybrids with range extenders. Possibly mounted in the near future on Chinese cars branded Leapmotor?
