Stellantis might move part of its Chinese electric vehicle production to Europe

Francesco Armenio
To bypass tariffs on Chinese cars, Stellantis may shift production of some Leapmotor models to Europe.
Stellantis Leapmotor International

Stellantis is reportedly considering transferring the production of some Leapmotor vehicles to Europe in response to new tariffs on the import of electric vehicles. If the duties were to be applied, partners who will begin sales in Europe from September could anticipate the transfer of the assembly of Leapmotor models to Stellantis’ European plants to avoid additional costs, as indicated by CEO Carlos Tavares. Previously, it was announced that the production of electric vehicles would move out of China, also due to the intensification of international trade tensions.

Stellantis could move the production of some models from China to Europe

Stellantis Leapmotor

This week, the European Union notified car manufacturers including BYD, Geely, and SAIC, owner of MG, of additional taxes on electric vehicle imports after discovering that the manufacturers had received state subsidies that violated trade rules. The decision has drawn strong rebuke from China and has foreshadowed similar measures.

The tariff level, in addition to the current 10% tariff, will vary depending on the degree of cooperation of individual car manufacturers with the investigation. BYD will pay an additional 17.4 percent while SAIC Motor‘s tariff will rise to 38.1 percent.

German officials have indicated that the government is working to prevent, or at least soften, the entry into force of the duties, arguing that the escalation of trade tensions will do more harm than good. The provisional EU duties are expected to start from July 4 before being officially implemented in November. Therefore, Stellantis could thus circumvent part of the problem. Last month, Stellantis had already stated that its plant in Tychy, Poland, which currently produces Alfa Romeo Junior, Jeep Avenger, and Fiat 600, could be a potential site where Leapmotor vehicles could be built.