Stellantis is betting on the Chinese manufacturer Leapmotor to revive its Spanish factories.
Stellantis is betting on the Chinese manufacturer Leapmotor to revive its Spanish factories.

The Stellantis group has decided to open several of its Spanish industrial sites to the Chinese manufacturer Leapmotor in order to compensate for the underutilization of some European plants, amid a slowing automotive market. The partnership involves the production of Chinese electric models at the group's facilities in Spain.

This strategy should allow the Franco-Italian-American automotive giant to improve the utilization rate of its assembly lines while accelerating its offensive in the European market for low-cost electric vehicles. Leapmotor, in which Stellantis became a shareholder in 2023, is seeking to circumvent European customs barriers targeting electric cars imported from China.

An industrial alliance to counter Asian competition

According to several business media outlets, advanced discussions are underway, particularly concerning the Spanish plants in Zaragoza and Vigo, which have faced declining production in recent years. Stellantis hopes this will preserve industrial activity and limit social risks at its Iberian sites.

The automaker, led by Carlos Tavares, is simultaneously strengthening its partnerships with Chinese brands to counter the growing presence of BYD, MG, and Chery in the European market. This strategy illustrates the automotive industry's accelerated shift towards alliances between Western groups and Chinese manufacturers specializing in electric vehicles.

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