Stellantis expands Leapmotor partnership to build Chinese EVs in Spain

Overview

Updated May 27

Stellantis spent roughly $26 billion building its own electric vehicles, then scrapped the plans. The Jeep and Peugeot owner will now build Leapmotor's B10 SUV at its Figueruelas factory in Zaragoza from 2026, and a second model at its Madrid plant from 2028. In May 2026, CEO Antonio Filosa placed Leapmotor at the center of FaSTLAne 2030, his €60 billion five-year plan to return Stellantis to profitability.

The Spain plants let Stellantis sell cheaper EVs using Chinese parts, sidestepping EU import tariffs of up to 35.3%. Leapmotor's European sales jumped 706% year-on-year in Q1 2026 to nearly 25,000 vehicles — a 3.2% share of the bloc's battery EV market. Filosa has since signaled the partnership will extend into Mexico and Canada.

Why it matters

European drivers will buy cheaper EVs built locally on Chinese platforms. Western automakers may need Chinese partners to compete in the EV market.

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Key Indicators

$26B

Stellantis EV writedown

Charges booked in February 2026 after scrapping internal EV product plans

21%

Stellantis stake in Leapmotor

Acquired in October 2023 for about €1.5 billion

€29,900

B10 European starting price

Roughly half the price of comparable European EVs in the C-SUV segment

35.3%

Top EU tariff on China-built EVs

Definitive countervailing duty applied since October 2024; building in Europe avoids it

24,751

Leapmotor EVs sold in Europe, Q1 2026

Up 706% year-on-year; captured 3.2% of the European battery EV market in the first quarter

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

People Involved

Antonio Filosa

Chief Executive, Stellantis

Executing FaSTLAne 2030; placed Leapmotor at the center of a €60 billion five-year turnaround; expanding the partnership beyond Europe into Mexico and Canada

Carlos Tavares

Former Chief Executive, Stellantis

Departed late 2024; architect of the original Leapmotor deal

Zhu Jiangming

Founder and Chairman, Leapmotor

Co-running global expansion with Stellantis

Organizations Involved

Stellantis

Multinational automaker

Executing FaSTLAne 2030 five-year plan; Leapmotor partnership now central to EV strategy across Europe and North America

Stellantis is the Dutch-headquartered automaker formed by the 2021 merger of Fiat Chrysler and PSA Group, owning 14 brands including Jeep, Peugeot, Opel, Chrysler, and Citroen.

Leapmotor

Chinese EV manufacturer

Using Stellantis to scale outside China

Leapmotor is a Chinese electric vehicle maker based in Hangzhou, focused on lower-cost EVs using in-house electronics and integrated platforms.

Leapmotor International (LPMI)

Joint venture

European sales up 706% year-on-year in Q1 2026; moving from importer to manufacturer; North American expansion under discussion

LPMI is a 51/49 Stellantis-led joint venture based in Amsterdam that holds exclusive rights to sell and manufacture Leapmotor vehicles outside Greater China.

Timeline

October 2023 May 2026

12 events Latest: May 26th, 2026 · 4 months ago Showing 8 of 12

Tap a bar to jump to that date

May 2026
Stellantis to build Leapmotor EVs in Spain
Latest Strategic announcement

The company will produce the Leapmotor B10 in Zaragoza from 2026 and a second model in Madrid from 2028, using Chinese supply chains through LPMI.
May 26th, 2026
Filosa says Leapmotor will expand to Mexico and Canada
Strategic announcement

Stellantis CEO Antonio Filosa says the company sees opportunity to sell and produce Leapmotor vehicles in Mexico and potentially Canada. He explicitly rules out the US, saying there is 'no space' for the brand there.
May 22nd, 2026
Stellantis unveils FaSTLAne 2030 five-year plan
Strategic announcement

CEO Antonio Filosa presents a €60 billion turnaround plan targeting positive free cash flow by 2027 and a 7% profit margin by 2030, with Leapmotor named a central growth pillar across Europe and emerging markets.
May 21st, 2026
February 2026
EU Commission proposes 70% local content rule for EV subsidies
Regulatory

The European Commission signals it will require EVs to source at least 70% of their components from within the EU to qualify for state subsidies, directly targeting Chinese-platform cars assembled in Europe.
February 17th, 2026
Stellantis books $26 billion in EV writedowns
Financial

Filosa scraps internal EV product plans and posts the largest single EV-related charge in auto industry history.
February 6th, 2026
July 2025
Leapmotor B10 orders open in Europe
Product launch

The C-segment electric SUV lists at €29,900, undercutting most European-built rivals.
July 30th, 2025
May 2025
Antonio Filosa named CEO
Leadership

Stellantis board unanimously picks the 25-year veteran to run a strategic reset, effective June 23.
May 28th, 2025
December 2024
Carlos Tavares leaves Stellantis
Leadership

The architect of the Leapmotor deal exits after board confidence collapses over cost cuts.
December 1st, 2024
October 2024
EU imposes definitive tariffs on Chinese EVs
Regulatory

Brussels applies countervailing duties of 17% to 35.3% on Chinese-built electric vehicles, on top of the existing 10% import duty.
October 30th, 2024
September 2024
Leapmotor T03 and C10 reach European dealerships
Product launch

First Leapmotor models go on sale across Stellantis dealer networks in nine European countries.
September 1st, 2024
May 2024
Leapmotor International joint venture launches
Corporate

A 51/49 Stellantis-led joint venture is set up in Amsterdam to handle Leapmotor sales outside China.
May 14th, 2024
October 2023
Stellantis buys 21% of Leapmotor
Investment

Stellantis pays about €1.5 billion for a 21% equity stake, plus rights to sell Leapmotor cars outside Greater China.
October 26th, 2023

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Scenarios

B10 production begins in Zaragoza on schedule

Likely Resolves by Q1 2027

Discussed by: Stellantis press materials, CnEVPost, Automotive Manufacturing Solutions

The Figueruelas line opens for Leapmotor B10 assembly in late 2026 as planned. Spanish-built B10s ship across Europe at or below the current €29,900 import price, free of the 21% China-specific EU tariff. If volume tracks early dealer orders, Stellantis quickly allocates more Leapmotor models to other European plants.

EU 'Made in Europe' rules force higher local content

Possible Resolves by End of 2027

Discussed by: European Commission trade officials, EU automotive industry analysts

Brussels tightens local-content thresholds for vehicles built in Europe using Chinese components, treating heavily Chinese-sourced cars as imports for tariff and subsidy purposes. Stellantis and Leapmotor are forced to localise battery and parts production faster than planned. The cost advantage shrinks, though European production still beats direct import economics.

Other Western automakers strike similar Chinese partnerships

Possible Resolves by End of 2027

Discussed by: Reuters auto coverage, S&P Global Mobility, Wards Auto

Renault, Volkswagen, or another European brand announces a comparable manufacturing tie-up with a Chinese EV maker, using a joint venture to bring Chinese platforms and parts into European plants. The Stellantis-Leapmotor template becomes the default route for legacy automakers struggling to match Chinese cost structures.

Beijing restricts technology transfer to Western JVs

Unlikely Resolves by End of 2027

Discussed by: China-focused trade analysts, CSIS, Bloomberg

Chinese authorities limit the export of EV platform technology and battery know-how to foreign joint ventures, mirroring earlier restrictions on solar and rare-earth tech. Leapmotor is required to keep critical IP in China, slowing the European production ramp and forcing Stellantis to import more finished components instead of building locally.

Leapmotor enters production or sales in Mexico by 2028

Possible Resolves by End of 2028

Discussed by: Stellantis CEO Antonio Filosa, CNBC reporting (May 2026)

Filosa confirmed in May 2026 that Stellantis sees clear opportunity to extend the Leapmotor partnership to Mexico, where it already operates plants and can avoid both EU and US trade barriers. Exact models and timing are not yet set, but Mexico would give Leapmotor access to North American consumers without triggering US tariffs on Chinese-branded vehicles.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1984-2010

NUMMI joint venture (1984)

General Motors and Toyota jointly ran a car plant in Fremont, California from 1984. GM got access to Toyota's production system. Toyota got a US manufacturing foothold ahead of expected import restrictions.

Then

The Fremont plant went from GM's worst factory to one of its best in under two years. Toyota built Corollas and GM built Chevy Novas on the same line.

Now

Toyota took the lessons home and built more US plants on its own. GM took 15 years to apply what it learned and shut its half of NUMMI in 2009.

Why this matters now

NUMMI is the closest analogue for what Stellantis is now doing in reverse: the legacy automaker partners with a foreign rival to learn cheaper, faster production. The unresolved NUMMI question — who gains more from the deal — applies directly here.

October 1984

Volkswagen-SAIC joint venture (1984)

Volkswagen formed a 50/50 joint venture with Shanghai Automotive Industry Corporation to build Santana sedans in China. It was one of the first major Western-Chinese auto JVs and the template Beijing required for foreign carmakers entering China for the next four decades.

Then

VW dominated the Chinese passenger car market for two decades and earned billions in profits.

Now

SAIC and its Chinese peers learned modern auto manufacturing from their JV partners. By 2024, Chinese brands had overtaken Western ones in their home market and started exporting back.

Why this matters now

The Stellantis-Leapmotor deal reverses the 1984 arrangement. The Chinese partner now brings the technology and the European partner brings the market access. The same JV mechanic, the same knowledge transfer question, but the direction is flipped.

August 2010

Geely buys Volvo Cars (2010)

Chinese automaker Geely paid Ford $1.5 billion in cash and notes for Volvo Cars, then the largest overseas acquisition by a Chinese carmaker. Volvo kept its Swedish headquarters and design teams under Geely ownership.

Then

Volvo stayed in Sweden and Belgium but gained access to Chinese suppliers, capital, and engineering. Sales recovered after years of Ford-era decline.

Now

Volvo became a profitable global EV brand built on Geely platforms. The deal showed European manufacturing could survive under Chinese ownership when capital and tech flowed back into the brand.

Why this matters now

Geely-Volvo proved Chinese capital and platforms could be paired with European production without killing the European brand. Stellantis is testing a lighter version of the same model, without selling itself outright.