Stellantis to Integrate Leapmotor Tech in Fiat, Opel, Peugeot

Stellantis is studying the integration of technologies from its Chinese partner Leapmotor into European vehicles from Fiat, Opel and Peugeot. The two groups are discussing an expansion of their joint venture created in 2023, with the goal of finalizing an agreement before year-end according to Bloomberg.

"Stellantis holds 51% of Leapmotor International versus 49% for the Chinese manufacturer, but currently has no access to its partner's technologies" — Sources close to the Bloomberg dossier

An established but limited partnership

Franco-Italian group Stellantis took a 20% stake in Leapmotor in 2023 for 1.5 billion euros. This alliance materialized through the creation of Leapmotor International, a joint venture where Stellantis holds the majority with 51% of shares.

Currently, this partnership is limited to the distribution and production of Leapmotor vehicles outside China. The T03 and C10 models are already sold in Europe through the Stellantis network, and European production of the B10 is set to begin at a Spanish plant operated by the group.

Toward access to Chinese technologies

Discussions center on access to battery technologies and electric propulsion systems developed by Leapmotor. This evolution would mark a turning point in Stellantis's strategy, which seeks to reduce costs for its mass-market electric models.

According to Bloomberg sources, negotiations remain at a preliminary stage and could fail. Even in case of agreement, regulatory obstacles persist, particularly concerning data protection and American restrictions on connected vehicles linked to China.

A survival strategy amid crisis

This move comes in a difficult context for Stellantis, which announced a net loss of 23.8 billion dollars in the second half of 2024. The group revised its electric ambitions downward in North America following policy changes from the Trump administration.

The use of Leapmotor technologies could concern the Fiat, Opel and Peugeot brands on the mass-market vehicle segment. This approach fits within a broader trend where Western manufacturers are closely examining Chinese innovations in electrification.

When could an agreement be signed?

Partners are targeting finalization of negotiations before the end of 2026 according to Bloomberg. However, the complexity of regulatory and technological issues could delay this timeline.

Europe, new sino-Western playground

This alliance illustrates the reversal of power dynamics in the automotive industry. For decades, Western manufacturers brought their engine expertise to the Chinese through joint ventures. Today, it is Chinese electric technologies that interest Europe.

Ford works with Changan, General Motors collaborates with SAIC, and now Stellantis could tap into Leapmotor's expertise. This evolution reflects China's lead in automotive electrification.

Regulatory challenges to overcome

Integration of Chinese technologies raises questions of technological sovereignty and data security. The European Union is closely examining these partnerships, particularly regarding vehicle software and connectivity.

American restrictions on Chinese suppliers further complicate matters for a group like Stellantis, present on both sides of the Atlantic with its Jeep, Ram and Dodge brands.

The outcome of these negotiations could redefine Stellantis's electric strategy in Europe. Facing the rise of Chinese manufacturers and pressure on costs, the group is betting on its Asian partner's expertise to maintain competitiveness in the affordable electric vehicle segment.