Investment of 1.5 billion euros by Stellantis

Stellantis, one of the world’s largest automotive groups, continues to grow with its high-tech, competitive products, as well as its acquisitions and collaborations, according to a brand statement.

In this context, Stellantis NV, which continues to negotiate with Leapmotor, one of the leading Chinese car manufacturers, announced that it plans to invest around 1.5 billion euros to buy around 20 percent of the company. This investment will make Stellantis a significant shareholder.

It will be the first global cooperation in the field of electric cars

The deal also includes the creation of Leapmotor International. This means a joint venture led by Stellantis that has exclusive rights to manufacture, export and sell Leapmotor products outside of China.

The aim of the partnership is to further increase sales of Leapmotor in China and significantly accelerate sales of the Leapmotor brand in other regions, starting with Europe, by leveraging Stellantis’ global sales force.

Stellantis plans to leverage Leapmotor’s highly innovative, cost-effective electric vehicle ecosystem in China to help meet Dare Forward 2030’s key electrification goals, with the opportunity to further explore mutually beneficial synergies. The joint venture plans to start deliveries in the second half of 2024.

CEO of the joint venture from Stellantis

Both companies expect Leapmotor’s electric vehicle product offering to complement Stellantis’ current technology and portfolio of iconic brands to provide more affordable mobility solutions for global customers.

Stellantis will hold two seats on Leapmotor’s board of directors and will appoint the chief executive officer (CEO) of the Leapmotor International joint venture.

Stellantis CEO Carlos Tavares, whose views were included in the statement, said: “With the growing number of talented electric vehicle start-ups in China, efficient and agile next-generation electric vehicle players like Leapmotor will continue to dominate major segments in China. . Similar to our technology-focused We believe it is time for Leapmotor, one of the impressive new EV players with an entrepreneurial mindset, to take a leadership role in supporting global expansion plans. Through this strategic investment, we can fill a gap in our business model and enable Leapmotor to expand both in China and abroad.” We can benefit from the competitiveness. I would like to thank Mr. Zhu Jiangming and the entire team of the company for their cooperation in creating this new opportunity.” he said.

There will be technological and commercial synergy

Leapmotor founder and CEO Zhu Jiangming said today is the biggest turning point in Leapmotor’s history, saying, “I am very excited to witness this moment together with Mr. Tavares and his team. With the technologies we have developed as a result of our extensive With Leapmotor’s experience, it will deliver best-in-class electric vehicle products.” “We believe in mutually beneficial partnerships created by strong players in this fast-paced environment. By creating technology and business synergies with Stellantis and continuing to innovate and be creative, we will offer Leapmotor electric vehicles to the global market.” He made a statement.

According to the statement, China’s largest and fastest-growing segment is the middle and high-end markets. Focusing on these markets, Leapmotor ranked first among NEV car manufacturers in China, delivering approximately 111 thousand NEVs in 2022.

Within the next 3 years, Leapmotor plans to cover the entire segments A to E with a single technical architecture with 3 cutting-edge scalable platforms, namely battery electric vehicles and range extender electric vehicle powertrains.

Leapmotor stands out as the world’s first all-electric vehicle company to implement “Cell to Chassis” technology on a large scale. In addition, Leap 3.0’s new centrally controlled “Four Leaf Clover” electrical and electronic architecture provides uninterrupted and efficient cooperation between the core components of smart electric cars.

The unique vertical integration model aims to maximize scalability and enables Leapmotor to respond quickly to customer needs.

More than 50 billion euros have been invested in the transition to electrification

Founded in early 2021, Stellantis owns 14 iconic automotive brands and two mobility companies with over a century of experience.

The company and its brands aim to provide customers with the freedom of clean, safe and affordable mobility in more than 130 markets in more than 30 countries.

Stellantis delivered more than 6 million vehicles in 2022 with net revenue of €179.5 billion and net profit of €16.8 billion. In the first half of 2023, the company had net revenues of €98.4 billion and net profit of €10.9 billion, achieving one of the highest adjusted operating income (AOI) margins in the industry at 14.4 percent.

Stellantis is investing more than €50 billion in the electrification transition over the next 10 years to achieve the Dare Forward 2030 targets. The company aims to achieve a 100% sales mix of battery electric vehicles for passenger cars in Europe by 2030 and a 50% sales mix batteries for passenger cars and light commercial vehicles in the United States.

To achieve these sales targets, Stellantis is securing approximately 400 GWh of battery capacity, including support for 6 battery manufacturing facilities in North America and Europe.

Stellantis is on track to become a net-zero carbon company by 2038, with a single-digit percentage offset of remaining emissions, incl. In parallel with this strategic move, Stellantis remains committed to its active-light business model for foreign brands in China.

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