Located under the roof of more than one giant automobile company Stellantis and located in Turkey Leapmotor, took an important step.
The detailed statement made on the subject included the following: “Stellantis continues to grow with its high-tech, competitive products it develops, as well as with its acquisitions and collaborations. In this context, Stellantis NV continues its negotiations with Leapmotor, one of China’s leading automobile manufacturers. announced that it plans to invest around 1.5 billion Euros to acquire approximately 20 percent of the company. This makes Stellantis a significant shareholder. The agreement also includes the formation of Leapmotor International. This means a 51/49 Stellantis-led joint venture with exclusive rights to manufacture, as well as export and sell Leapmotor products outside Greater China. This will also be the first global electric vehicle collaboration between the industry’s leading automaker and a Chinese new energy vehicles (NEV) OEM. The partnership aims to further increase Leapmotor’s sales in China, the world’s largest market, and to significantly accelerate the sales of the Leapmotor brand in other regions, starting with Europe, by leveraging Stellantis’ global commercial power.
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Stellantis plans to leverage Leapmotor’s highly innovative, cost-effective electric vehicle ecosystem in China to help meet key Dare Forward 2030 electrification targets, with the opportunity to further explore mutually beneficial synergies. The joint venture plans to start shipments in the second half of 2024.
The two companies anticipate that Leapmotor’s electric vehicle product offerings will complement Stellantis’ current technology and iconic brand portfolio and provide more affordable mobility solutions to global customers. Stellantis will have two seats on the Leapmotor Board of Directors and will appoint the CEO of the Leapmotor International joint venture.”
Commenting on the issue, Stellantis CEO Carlos Tavares“As the number of talented electric vehicle start-ups in China increases, efficient and agile next-generation electric vehicle players such as Leapmotor will further dominate mainstream segments in China.
We believe it is time for Leapmotor, one of the impressive new electric vehicle players with a technology-focused, entrepreneurial mindset similar to ours, to take a leading role in supporting global expansion plans. Through this strategic investment, we can fill a gap in our business model and benefit from Leapmotor’s competitiveness both in China and abroad. “I would like to thank Mr. Zhu Jiangming and the entire team of the company for their cooperation in creating this new opportunity.” said.
Stating that today is the biggest turning point in Leapmotor’s history, Leapmotor Founder and CEO Zhu Jiangming said: “I am thrilled to witness this moment with Mr. Tavares and his team. With the technologies we have developed as a result of our extensive experience, Leapmotor offers the best-in-class electric vehicle products to the market at the most competitive costs. In this rapidly developing environment, we believe in win-win partnerships formed by strong players. “By creating technology and commercial synergy with Stellantis and continuing to be innovative and creative, we will introduce Leapmotor electric vehicles to the global market.”
The following was also stated about the step taken: “China’s largest and fastest growing segment is the mid- and high-end markets. Focusing on these markets, Leapmotor ranked first among NEV car manufacturers in China by delivering approximately 111,000 NEVs in 2022. Within the next three years, Leapmotor plans to cover the entire segments A to E with a single technical architecture with three high-end scalable platforms, namely battery electric vehicle and range extender electric vehicle powertrains.
Leapmotor stands out as the world’s first pure electric vehicle company to implement Cell-to-Chassis technology on a large scale. In addition, the ‘Four Leaf Clover’ Leap 3.0 centrally controlled new electrical and electronic architecture provides uninterrupted and efficient cooperation between the basic components of smart electric vehicles. The unique vertical integration model aims to maximize scalability, allowing Leapmotor to respond quickly to customer needs.
Founded in early 2021 but with more than a century of experience, Stellantis owns 14 iconic automotive brands and two mobility companies. The company and its brands aim to provide customers with the freedom of clean, safe and affordable mobility in more than 130 markets in more than 30 countries.
Stellantis delivered more than 6 million vehicles in 2022, with net revenue of 179.5 billion Euros and net profit of 16.8 billion Euros. In the first half of 2023, the company had net revenue of 98.4 billion euros and net profit of 10.9 billion euros, reaching one of the highest adjusted operating income (AOI) margins in the industry at 14.4 percent.
Stellantis will invest over €50 billion in electrification over the next decade to achieve Dare Forward 2030 targets. The company aims to achieve a 100 percent passenger car battery electric vehicle sales mix in Europe and a 50 percent passenger car and light commercial vehicle battery electric vehicle sales mix in the United States by 2030. To achieve these sales targets, the company is securing approximately 400 GWh of battery capacity, including the support of six battery manufacturing facilities in North America and Europe.
Stellantis is on track to become a net-zero carbon company with single-digit percentage offset of remaining emissions, all inclusive, by 2038. “In parallel with this strategic move, Stellantis remains committed to its asset-light business model for foreign brands in China.”