Strategic Partnership and Investment Plan
Stellantis, renowned for its production of iconic brands like Jeep and Ram, announced its intention to invest approximately €1.5 billion in Leapmotor, a prominent Chinese electric vehicle manufacturer. The joint statement released by the two companies emphasized their strategic partnership and the establishment of a joint venture aimed at enhancing Leapmotor’s market presence, both domestically and internationally. The collaboration seeks to leverage Leapmotor’s advanced EV ecosystem in China to assist Stellantis in meeting its own targets for transitioning to electric vehicles.
Stake Acquisition and Market Expansion
The investment will grant Stellantis an approximate 20% stake in Leapmotor, fostering a deeper engagement between the two entities. As part of the agreement, the Stellantis-led joint venture, holding a majority stake of 51%, will enjoy exclusive rights to distribute and market Leapmotor’s electric vehicles beyond the borders of China. Leapmotor, known for its focus on the mid- to high-end segment of the Chinese EV market, has made significant strides, having sold 111,000 electric vehicles in 2022. Its product portfolio includes three distinct EV models, namely the BEV T03, the SUV C11, and the C01 sedan.
Market Response and Corporate Overview
Following the announcement, Leapmotor’s Hong Kong-traded shares experienced a decline of 9.2% on the subsequent trading day. Stellantis NV, a multinational automotive powerhouse, emerged from the merger of the Italian–American conglomerate Fiat Chrysler Automobiles and the French PSA Group. The company’s operational headquarters are based in Amsterdam, reflecting its global influence and reach within the automotive industry.
SOURCE: Ref Image from Car Expert
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