Stellantis Opens 2 Spanish Plants to Leapmotor as $70 Billion Turnaround Targets Idle Capacity
Updated
Updated · Business Model Analyst · May 25
Stellantis Opens 2 Spanish Plants to Leapmotor as $70 Billion Turnaround Targets Idle Capacity
11 articles · Updated · Business Model Analyst · May 25
Stellantis will let Leapmotor build vehicles in two Spanish factories, making the Chinese EV maker a centerpiece of CEO Antonio Filosa’s $70 billion turnaround plan.
About 60% European capacity use left Stellantis with costly idle plants after roughly $26 billion in losses last year, and the company says contract production can spread fixed costs and import Chinese EV know-how.
Leapmotor gains local EU manufacturing that helps avoid Brussels tariffs on Chinese EV imports, while Stellantis extends a partnership formed after it became the startup’s largest shareholder in 2023.
The strategy carries a clear risk: Leapmotor sold nearly 600,000 vehicles in 2025, turned its first annual profit, and already competes on price with Volkswagen, Renault and Tesla in Europe.
Stellantis is also pursuing a similar assembly deal with Dongfeng in France, underscoring a broader industry experiment in using Chinese partners to keep underused European plants running.
Is Stellantis’s China deal a brilliant lifeline or a Trojan horse for European automakers?
As Chinese EVs bypass tariffs by building in Europe, is the 'Made in EU' label losing its meaning?
Stellantis and Leapmotor’s €4.1 Billion Bet: The New Blueprint for European EV Production and Competitiveness
Overview
The Stellantis-Leapmotor partnership marks a major step for the European electric vehicle market, launching a joint venture in May 2024 to expand globally. This alliance aims to boost European EV production by using Stellantis’s underutilized factories and gives Leapmotor a fast track to set up manufacturing in Europe. Driven by fierce competition from Chinese brands, European automakers are shifting toward greater efficiency and innovation. The deal is seen as a possible model for future collaborations between European and Chinese carmakers, reflecting a strategic response to the rapidly changing global EV landscape.