Stellantis considering production of Leapmotor EV in Italy
© Reuters. FILE PHOTO: The Stellantis logo is seen at the company’s headquarters in Poissy, near Paris, France, February 20, 2022. REUTERS/Gonzalo Fuentes//File photo
MILAN (Reuters) – Stellantis (NYSE:) is considering producing up to 150,000 low-cost electric vehicles (EVs) at its Mirafiori complex in Turin, Italy, as part of a deal with Chinese automaker Leapmotor (HK:). Europe said on Monday.
The French-Italian automaker bought a 21% stake in electric vehicle maker Leapmoto in a $1.6 billion deal last year. As part of that deal, the two groups announced a joint venture. The joint venture will be 51% owned by Stellantis and will give the European automaker exclusive rights to manufacture Leapmotor products outside of China.
Stellantis CEO Carlos Tavares said at the time that Leapmotor’s car would debut in Europe within up to two years.
Production of Leapmotor’s cars in Italy could begin as early as 2026 or 2027, Automotive News Europe said, citing sources familiar with the matter.
Answering questions when announcing annual earnings last week, Tavares said the group could manufacture Leapmotor’s cars in Italy “if there is a business case for it”.
“It depends on cost competitiveness and quality competitiveness,” he said. “So there is an opportunity to seize that opportunity at some point.”
A Stellantis spokeswoman said the company had nothing further to add to comments the CEO made last week.
Stellantis’ current production at Mirafori includes the 500 BEV compact car.
Allocating Leapmotor car production to Mirafiori could help Stellantis increase the group’s production in Italy to 1 million vehicles by the end of the decade, up from 750,000 last year, a target agreed with the Italian government.
The group said its Italian production targets depend on a number of factors, including incentives for public car purchases, the development of electric charging networks and lower energy costs.
