Daily Management Review

Stellantis to move electric car production from China as part of JV with Leapmotor


The automotive company Stellantis will shift some of its production of electric vehicles from China to Europe in the event that more taxes are levied on Chinese-made automobile imports into the European Union.

Stellantis CEO Carlos Tavares told investors during a meeting that the company is reviewing plans to develop electric cars as part of a joint venture with Chinese partner Leapmotor, as reported by The Wall Street Journal.

In May, Stellantis declared that it would begin selling electric cars created in collaboration with Leapmotor in nine European nations, including Germany, France, and Italy, in September. The joint venture partners had anticipated that Leapmotor's electric cars would eventually be produced in Stellantis' facilities all over the world.

Tavares stated on Thursday that the businesses plan to expedite the transfer of assembly of certain Leapmotor vehicle types to Stellantis facilities because of potential duty hikes.

The European Commission declared earlier this week that it would be levying more taxes on Chinese electric vehicle imports into the EU. The regulator's preliminary judgment from the continuing inquiry is that unfair subsidies are benefiting Chinese participants in the electric car value chain. The European Commission feels that this could potentially cause financial harm to European producers of electric vehicles.

source: wsj.com