Stellantis & Leapmotor: Developing a Multi-National EV

Stellantis and Leapmotor are negotiating a joint venture that would centre on cross-border component flows and manufacturing integration. The proposed agreement would see Chinese technology deployed at a Spanish production facility owned by Stellantis.

According to Reuters, the deal under discussion would position Leapmotor as a key supplier of electronic and electrical components for an Opel-branded SUV. Stellantis operates the Zaragoza plant in Spain where the vehicle would be assembled.

The talks follow a US$26bn charge taken by Stellantis in February 2026 to abandon certain fully electric vehicle programmes.

Component sourcing under discussion

Negotiations between Stellantis and Leapmotor over the Opel project, codenamed O3U, began in late 2025. According to Reuters, which spoke with three people familiar with the matter, an agreement could be reached as early as April 2026.

The proposed model would use a shared platform with the Chinese manufacturer's B10 compact SUV. The B10 will also be assembled later in 2026 for the European market at the Zaragoza facility.

Under the terms being discussed, Leapmotor would supply key technologies and components including electronic and electrical parts. Opel would design the exterior, according to one of the sources.

A substantial portion of the vehicle's development would occur in China. This could mean engineering resources and tooling preparation would be split across two continents.

Production of the new Opel model is expected to start in 2028. Reuters reported a targeted annual output of 50,000 vehicles.

Manufacturing partnership already established

Stellantis invested €1.5bn (US$1.75bn) to acquire 20% of Leapmotor in 2023.

Carlos Tavares, former Stellantis Chief Executive Officer, said at the time of the deal: "As consolidation unfolds among the capable electric vehicles start-ups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China.

"We feel it's the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours."

The two companies also formed Leapmotor International, which is a Stellantis-led joint venture with a 51/49 partnership between the two companies.

The entity manages production and sales of Leapmotor vehicles outside of China. According to a Bloomberg report, Stellantis is also in talks with Leapmotor to manufacture EVs at an idle plant in Ontario, Canada.

This indicates an effort to establish North American production capacity using Chinese component architecture.

Production footprint expanding beyond China

In March 2026, Leapmotor opened a European Innovation Centre in Munich. This was its first facility outside of China as the company works to expand internationally.

Leapmotor also marked its first 12 months in the UK. In that period, the brand built a 2.2% electric car market share, having registered 7,369 EVs.

The T03 model retails at £15,995 (US$21,480). This pricing reflects lower manufacturing costs achieved through Chinese production and component sourcing.

Supply chain reset at Stellantis

Stellantis, with brands including Opel, Alfa Romeo, Jeep, Dodge, Vauxhall, Peugeot, Chrysler and Ram, announced a US$26bn write-down related to electrification in early 2026. A US law firm launched an investigation into potential breaches of federal securities laws following the announcement.

When announcing its 2025 results, Stellantis said in a statement it was "resetting the product plan and EV supply chain to reflect customer demand and shifting regulations".

The proposed manufacturing arrangement with Leapmotor demonstrates a strategy to source components from lower-cost suppliers. Chinese manufacturers such as BYD can produce EVs with shorter lead times and reduced production expenses.

BYD currently sells its cheapest model, the Dolphin Surf, in Europe at £20,470.38 (US$27,177). Leapmotor's T03 retails at £15,995 (US$21,480).

Interest in EVs has grown in Europe during 2026. Tesla and BYD recorded strong sales, which represents price-conscious consumers looking to offset rising fuel costs.