Stellantis and Leapmotor announced on Friday that they are exploring a major expansion of their partnership, first announced in 2023.
The planned moves include the co-development of a fully electric Opel SUV, a potential transfer of ownership of a plant in Madrid, and expanded joint purchasing through the Leapmotor International (LPMI) joint venture.
Stellantis became Leapmotor‘s single largest shareholder in October 2023 with an approximately 21% stake, which has been diluted since then to approximately 19%.
The LPMI was launched in mid-2024 as a 51/49 Stellantis-led joint venture with exclusive rights for the sale and manufacturing of Leapmotor products outside Greater China.
Since launching the T03 and C10 in 2024, LPMI has expanded to more than 850 European points of sale and service.
The JV recorded over 40,000 European shipments in 2025, while expanding into South America, Asia-Pacific, the Middle East and Africa (MEA).
Leapmotor is targeting one million deliveries this year, after selling over 600,000 vehicles across the globe in 2025.
Speaking about the extended strategy, Leapmotor founder and CEO Zhu Jiangming said the combination of his company’s technology with Stellantis‘ global reach “would make this a uniquely powerful partnership.”
Stellantis CEO Antonio Filosa called the plan “a true win-win,” saying it is “expected to support production and advance localization in Europe of world-class manufacturing of electric vehicles at affordable prices.”
Filosa is set to be interviewed next week at the Financial Times‘ Future of the Car Summit in London, held between May 12 and 14.
Zaragoza Plant
Stellantis is assessing the addition of a new production line at its Figueruelas plant in Zaragoza, Spain, to manufacture Opel‘s all-new C-SUV BEV.
A potential start of production in 2028 is under evaluation.
The plant — where more than 10 million Opel Corsa have been built since 1982 — currently produces the Peugeot 208 and the Lancia Ypsilon.
The new Opel model will benefit from competitively priced LPMI-sourced components, which the companies said would enhance affordability for European customers.
Leapmotor is also considering bringing production of its compact SUV B10 to Zaragoza.
Villaverde Plant
The expansion would also include allocating a new Leapmotor vehicle to the Villaverde plant in Madrid, with a potential production start from the first half of 2028.
Stellantis and Leapmotor are discussing a potential transfer of the plant’s ownership to LPMI’s Spanish subsidiary.
The move follows the end of production of the Citroën C4 at the facility.
Vehicles manufactured at Villaverde would comply with upcoming Made-in-Europe requirements, and be sold by LPMI in both Europe and Middle East and African markets.
The goal is to boost price competitiveness while using European supply chain capabilities to accelerate time-to-market for new models.
Chinese EVs Produced in Europe
Building vehicles inside Europe allows Chinese automakers to avoid the countervailing duties the European Commission imposed in October 2024 on battery electric vehicles imported from China.
The additional tariffs come on top of the EU’s standard 10% import duty. They were set based on each manufacturer’s cooperation with the Commission’s 2023–2024 probe into state subsidies.
BYD faces a 17% countervailing duty, Geely 18.8%, and SAIC Motor 35.3%. Other cooperating companies, including Nio and XPeng, are subject to 20.7%.
Tesla, which requested an individual examination for its Shanghai-built vehicles, was assigned 7.8%. Combined with the base rate, Chinese EV makers face total tariffs of up to 45.3%.
Spain has emerged as a hub for Chinese EV production. In Zaragoza alone, several brands are preparing to begin assembly.
State-owned Hongqi is in talks with Stellantis to produce cars at the Zaragoza plant using Leapmotor‘s EV platform, while SAIC Motor’s MG is planning a standalone factory.
Chery has already begun assembling vehicles at a former Nissan plant in Barcelona through its Ebro joint venture with Spanish-based EV Motors SA, using knocked-down kits shipped from China.
BYD, which led plug-in vehicle sales in the country in the first quarter with 9,430 registrations and a 16% market share, has reportedly been considering Spain for its third European factory — after Hungary and Turkey.
Leapmotor’s Competitiveness
At the 2025 Munich Motor Show, Leapmotor announced plans to launch 15 electric and hybrid models in Europe by 2028, expanding to 25 markets with more than 200 dealerships.
Its models compete with entry-level EVs from local European manufacturers, including Renault’s R5 E-Tech and Volkswagen’s ID Polo.
From Thursday, customers in Germany can lease the T03 compact vehicle from as low as €49 ($58) per month — roughly half the price of the similar Fiat 500, produced under Stellantis.
The group has said it sees no risk of Leapmotor cannibalizing its own sales.
In Germany, Chinese brands can tap into a €3 billion EV subsidy program introduced this year.
The brand’s German sales more than quadrupled in April, according to data released by the KBA on Thursday.
Through the first four months of 2026, deliveries in Europe’s largest automotive market rose 358% to 4,523 vehicles.
