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Stellantis x Leapmotor
Stellantis acquired a 20% stake in China-based electric automaker Leapmotor as part of a $1.6 billion (1.5 billion euros) investment.
Typically OEMs have the strategy to start a joint venture with a local Chinese OEM in order to enter the market and eventually sell their vehicles in China. However, the Stellantis strategy stands apart in multiple ways. They invest in a Chinese OEM. To empower them to sell their vehicles in China, so entering the Chinese market through a proxy. In addition to that, they also plan to sell Leapmotor vehicles outside of China.
Leapmotor is vertically integrated and fully based in China. With sufficient funding and R&D synergies, they can up their product features to be able to offer a competitive product both inside and outside China. Leap motor is an existing brand that sold about 100,000 vehicles last year. Leapmotor, which employs more than 2,000 engineers, sold 44,500 units in the first half, 14% fewer than a year ago. Stellantis can save themselves from creating a brand space in the Chinese market for now, and piggyback on the Leapmotor brand instead.
Prior to this move, Stellantis reportedly sold its existing assets with Chinese automaker Guangzhou Automobile Group to Dongfeng Motor Group Co. in a $234 million deal.
Leapmotor was launched in 2015 with the backing of investors including state-owned Shanghai Electric Group Corp and Hongshan, formerly known as Sequoia Capital China.