Stellantis stops criticising Chinese carmakers long enough to buy into one

In a stunning about-face, Stellantis, one of the most vocal critics of Chinese electric car makers and European trade policy, is buying into one, Leapmotor, and helping it export cars to Europe.

Words are just words

For a while now, Carlos Tavares, CEO of Stellantis, has railed against Chinese automakers flooding Europe with electric vehicles (EVs) that significantly undercut local rivals.

At this year’s Consumer Electronics Show in Las Vegas, Mr Tavares claimed, “Regulation in Europe ensures that electric cars built in Europe are about 40 per cent more expensive than comparable vehicles made in China.”

Speaking to Automotive News Europe, the Stellantis CEO said Europe had two choices: “keep the European market open” with automakers and the supply chain slowly moving manufacturing to cheaper locations, or having a more restrictive trade policy with China so that Europe could “re-industrialise”.

Now he’s singing the praises of the Chinese auto industry.

In a press statement today, Mr Tavares said: “As consolidation unfolds among the capable electric vehicles startups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China.

“We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours.”

The deal

At a signing ceremony overnight, Stellantis confirmed it would invest €1.5 billion ($2.5 billion) in Leapmotor, purchasing about 21 per cent of the Chinese automaker.

As part of the deal, Stellantis will gain two seats on Leapmotor’s board, as well as a controlling 51 per cent stake in a new joint venture firm that will be in charge of Leapmotor’s global export and distribution network, as well as the Chinese firm’s future manufacturing operations outside of “Greater China”.

The two automakers plan to begin exporting Leapmotor products to Europe from the second half of 2024, although it’s unclear at this stage which models Stellantis and Leapmotor are planning to sell in Europe.

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