Thursday, April 25, 2024
NewsStellantis Exploring Production of Leapmotor EVs in Western Markets, CEO Reveals

Stellantis Exploring Production of Leapmotor EVs in Western Markets, CEO Reveals

Leapmotor EVs built in North America would signify more jobs and affordable EVs for all


Stellantis CEO Carlos Tavares has unveiled plans that could see the automotive giant manufacturing Leapmotor’s EV technology in Europe and North America. This strategic move is aimed at providing competitively priced models to rival other Chinese EV manufacturers in these regions.

 

Leapmotor, a Chinese electric vehicle manufacturer, is known for its innovative EV technology and competitive pricing. The company has gained attention for its commitment to advancing electric mobility and sustainable transportation solutions.

 

During a video conference from New York, Tavares highlighted the potential challenges that Western automakers face, including the possibility of governmental restrictions on Chinese exports. “We have the opportunity to assemble Leapmotor cars inside the bubble. It could be Europe; it could be North America,” Tavares stated, suggesting a proactive approach to navigating geopolitical trade dynamics.

 

The contemplation of Leapmotor EVs being built at Stellantis’s Mirafiori plant in Turin, Italy, was first hinted at by Automotive News Europe. Tavares further elaborated that no Stellantis-operated country is off the table for this potential production shift, indicating a broad scope for this initiative.

 

This development comes amid increasing pressures on automakers to reduce EV costs and offer vehicles that are financially accessible to a broader market. Tavares pointed out the stark cost disparities between Western and Chinese manufacturers, with the latter enjoying a significant 30% production cost advantage. Such economic challenges underscore the urgent need for innovation and adaptability among established automakers.

 

Tavares also touched upon the broader implications of the automotive industry’s evolution, suggesting that the future might witness a consolidation to as few as five major automakers worldwide. This consolidation is viewed as a necessary step for Western companies to achieve economies of scale and effectively compete with dominant Chinese players like BYD.

 

Moreover, Tavares raised concerns about the potential geopolitical consequences of Chinese automakers establishing factories in regions like Mexico to cater to the U.S. market. Such moves could test the limits of existing trade agreements and have broader implications for labor markets in the region.

 

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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