Stellantis, the automotive group resulting from the merger of Fiat Chrysler and Peugeot, is in negotiations to acquire a 20 percent stake in Leapmotor, a Chinese company that manufactures electric vehicles. This information comes from the Bloomberg website, citing anonymous sources close to the matter. The deal is valued at approximately 1 billion dollars and is aimed at strengthening the presence of the company led by Carlos Tavares in the Chinese market, which is the world’s largest for electric cars. The automotive group also has the option to increase its stake in Leapmotor in the future. Leapmotor’s shares have increased by around 22 percent in Hong Kong this year, giving the Hangzhou-based company a market value of 5.4 billion dollars.
Stellantis near the acquisition of 20% of Leapmotor
Leapmotor and Stellantis are also discussing the creation of a joint venture as part of the transaction. Leapmotor is a startup founded in 2015, based in Hangzhou, that produces compact and sporty electric cars. Its flagship model is the Leap C-More, a four-seater coupe with 170 horsepower and a range of 450 kilometers. Leapmotor also has two other models in development: the Leap T03, a two-seater city car, and the Leap S01, a sports sedan. Leapmotor sold approximately 10,000 cars in 2022 and aims to double sales in 2023. The company has also formed partnerships with other Chinese manufacturers, such as Dongfeng Motor and Changan Automobile, to provide them with its electric technology.
Stellantis is the fourth-largest car manufacturer in the world, with a 9 percent market share in 2022. The group owns 14 brands, including Fiat, Alfa Romeo, Jeep, Chrysler, Peugeot, Citroen, and Opel. Stellantis aims to have 100 percent of its sales in Europe and 50 percent in North America composed of electrified vehicles by 2030.
The automotive group has neither confirmed nor denied the news of the acquisition of a 20 percent stake in Leapmotor, but has stated that it is always looking for opportunities to expand its business. If the deal goes through, Stellantis will have a local partner to compete with Chinese electric car giants such as BYD, NIO, and Xpeng.