That is why the Opel Group Stellantis is investing billions in a Chinese electric car manufacturer

The European car company Stellantis wants to secure access to the important Chinese market for electric cars with an investment worth billions. Opel’s parent company is acquiring approximately 20 percent of Chinese electric car provider Leapmotor for approximately 1.5 billion euros.

The companies announced this on Thursday evening in Amsterdam and Hong Kong. Together, the companies also want to set up a joint venture for the production and distribution of cars outside China – 51 percent of which will be owned by Stellantis.

What is it about?

The aim of the collaboration is to boost Leapmotor’s sales in the highly competitive Chinese electric car market, as well as outside the People’s Republic. A start in Europe is planned first. Leapmotor’s range of electric cars complements Stellantis’ product range, the company said. There had been speculation for several months that Stellantis would join Leapmotor.

Last year, Stellantis boss Carlos Tavares canceled the plan for a joint venture with Chinese supplier GAC to produce Jeeps, saying he was unhappy with the progress of the plans.

The largest car market in the world also plays only a minor role for the multi-brand group (including Peugeot, Fiat, Chrysler, Jeep). Including unconsolidated joint ventures, Stellantis delivered only about 90,000 vehicles in the Asia-Pacific region, including China and India, in the first half of 2023. By comparison, competitor Volkswagen delivered 1.45 million vehicles in China alone.

(sda/awp/dpa)