By YANG Shihan, ZHOU Shuqi
Leapmotor announced on Thursday that Stellantis is planning to invest approximately 1.5 billion euros (about US$1.6 billion or 12 billion yuan) to acquire about 20 percent of Leapmotor’s equity and secure two seats on Leapmotor’s board.
Stellantis and Leapmotor are set to establish a joint venture, “Leap International” with a focus on international sales outside China and local production rights.
Leapmotor affiliate Dahua Technology will transfer its 7.9 percent stake in Leapmotor to Stellantis for HK$3.5 billion (3.3 billion yuan), relinquishing all Leapmotor shares.
In the era of electrification and digitalization, the longstanding model of markets driving automotive technological advancements has been declared obsolete. Chinese automotive companies are now engaged in reverse technology transfer, giving rise to novel joint venture and partnership models.
Unlike Volkswagen’s investment in XPeng Motors in the Chinese market, the collaboration between Stellantis and Leapmotor is aimed at international markets.
Stellantis is shifting towards a light-asset model and aims to utilize the Chinese region as a global automotive export hub and sell Leapmotor products in promising overseas markets.
Stellantis, the fourth-largest global automotive group, owns 14 automotive brands including Chrysler and Dodge and ventured into the electric market relatively late. Stellanti plans to invest at least US$35 billion in EVs.
In September this year, Leapmotor made its debut at the Munich Auto Show and intends to launch five models in Europe. These international operations will now be managed by Leap International.
In the third quarter of 2023, Leapmotor reported revenue of 5.7 billion yuan, a 31.9 percent year-on-year increase, with a first-ever positive quarterly gross margin of 1.2 percent.
