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Stellantis expands Leapmotor partnership to build Chinese EVs in Spain

Stellantis expands Leapmotor partnership to build Chinese EVs in Spain

Money Moves

Two Spanish plants will produce Leapmotor models using Chinese supply chains, months after Stellantis wrote down $26 billion on its own electric vehicle program

May 26th, 2026: Stellantis to build Leapmotor EVs in Spain

Overview

Stellantis spent roughly $26 billion building its own electric vehicles, then scrapped the plans. The Jeep and Peugeot owner will now build Leapmotor's B10 SUV at its Figueruelas factory in Zaragoza from 2026, and a second model at its Madrid plant from 2028. In May 2026, CEO Antonio Filosa placed Leapmotor at the center of FaSTLAne 2030, his €60 billion five-year plan to return Stellantis to profitability.

The Spain plants let Stellantis sell cheaper EVs using Chinese parts, sidestepping EU import tariffs of up to 35.3%. Leapmotor's European sales jumped 706% year-on-year in Q1 2026 to nearly 25,000 vehicles — a 3.2% share of the bloc's battery EV market. Filosa has since signaled the partnership will extend into Mexico and Canada.

Why it matters

European drivers will buy cheaper EVs built locally on Chinese platforms. Western automakers may need Chinese partners to compete in the EV market.

Questions about this story

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Key Indicators

$26B
Stellantis EV writedown
Charges booked in February 2026 after scrapping internal EV product plans
21%
Stellantis stake in Leapmotor
Acquired in October 2023 for about €1.5 billion
€29,900
B10 European starting price
Roughly half the price of comparable European EVs in the C-SUV segment
35.3%
Top EU tariff on China-built EVs
Definitive countervailing duty applied since October 2024; building in Europe avoids it
24,751
Leapmotor EVs sold in Europe, Q1 2026
Up 706% year-on-year; captured 3.2% of the European battery EV market in the first quarter

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People Involved

Organizations Involved

Timeline

October 2023 May 2026

12 events Latest: May 26th, 2026 · 1 month ago Showing 8 of 12
Tap a bar to jump to that date
  1. Stellantis to build Leapmotor EVs in Spain

    Latest Strategic announcement

    The company will produce the Leapmotor B10 in Zaragoza from 2026 and a second model in Madrid from 2028, using Chinese supply chains through LPMI.

  2. Filosa says Leapmotor will expand to Mexico and Canada

    Strategic announcement

    Stellantis CEO Antonio Filosa says the company sees opportunity to sell and produce Leapmotor vehicles in Mexico and potentially Canada. He explicitly rules out the US, saying there is 'no space' for the brand there.

  3. Stellantis unveils FaSTLAne 2030 five-year plan

    Strategic announcement

    CEO Antonio Filosa presents a €60 billion turnaround plan targeting positive free cash flow by 2027 and a 7% profit margin by 2030, with Leapmotor named a central growth pillar across Europe and emerging markets.

  4. EU Commission proposes 70% local content rule for EV subsidies

    Regulatory

    The European Commission signals it will require EVs to source at least 70% of their components from within the EU to qualify for state subsidies, directly targeting Chinese-platform cars assembled in Europe.

  5. Stellantis books $26 billion in EV writedowns

    Financial

    Filosa scraps internal EV product plans and posts the largest single EV-related charge in auto industry history.

  6. Leapmotor B10 orders open in Europe

    Product launch

    The C-segment electric SUV lists at €29,900, undercutting most European-built rivals.

  7. Antonio Filosa named CEO

    Leadership

    Stellantis board unanimously picks the 25-year veteran to run a strategic reset, effective June 23.

  8. Carlos Tavares leaves Stellantis

    Leadership

    The architect of the Leapmotor deal exits after board confidence collapses over cost cuts.

  9. EU imposes definitive tariffs on Chinese EVs

    Regulatory

    Brussels applies countervailing duties of 17% to 35.3% on Chinese-built electric vehicles, on top of the existing 10% import duty.

  10. Leapmotor T03 and C10 reach European dealerships

    Product launch

    First Leapmotor models go on sale across Stellantis dealer networks in nine European countries.

  11. Leapmotor International joint venture launches

    Corporate

    A 51/49 Stellantis-led joint venture is set up in Amsterdam to handle Leapmotor sales outside China.

  12. Stellantis buys 21% of Leapmotor

    Investment

    Stellantis pays about €1.5 billion for a 21% equity stake, plus rights to sell Leapmotor cars outside Greater China.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1984-2010

NUMMI joint venture (1984)

General Motors and Toyota jointly ran a car plant in Fremont, California from 1984. GM got access to Toyota's production system. Toyota got a US manufacturing foothold ahead of expected import restrictions.

Then

The Fremont plant went from GM's worst factory to one of its best in under two years. Toyota built Corollas and GM built Chevy Novas on the same line.

Now

Toyota took the lessons home and built more US plants on its own. GM took 15 years to apply what it learned and shut its half of NUMMI in 2009.

Why this matters now

NUMMI is the closest analogue for what Stellantis is now doing in reverse: the legacy automaker partners with a foreign rival to learn cheaper, faster production. The unresolved NUMMI question — who gains more from the deal — applies directly here.

August 2010

Geely buys Volvo Cars (2010)

Chinese automaker Geely paid Ford $1.5 billion in cash and notes for Volvo Cars, then the largest overseas acquisition by a Chinese carmaker. Volvo kept its Swedish headquarters and design teams under Geely ownership.

Then

Volvo stayed in Sweden and Belgium but gained access to Chinese suppliers, capital, and engineering. Sales recovered after years of Ford-era decline.

Now

Volvo became a profitable global EV brand built on Geely platforms. The deal showed European manufacturing could survive under Chinese ownership when capital and tech flowed back into the brand.

Why this matters now

Geely-Volvo proved Chinese capital and platforms could be paired with European production without killing the European brand. Stellantis is testing a lighter version of the same model, without selling itself outright.

October 1984

Volkswagen-SAIC joint venture (1984)

Volkswagen formed a 50/50 joint venture with Shanghai Automotive Industry Corporation to build Santana sedans in China. It was one of the first major Western-Chinese auto JVs and the template Beijing required for foreign carmakers entering China for the next four decades.

Then

VW dominated the Chinese passenger car market for two decades and earned billions in profits.

Now

SAIC and its Chinese peers learned modern auto manufacturing from their JV partners. By 2024, Chinese brands had overtaken Western ones in their home market and started exporting back.

Why this matters now

The Stellantis-Leapmotor deal reverses the 1984 arrangement. The Chinese partner now brings the technology and the European partner brings the market access. The same JV mechanic, the same knowledge transfer question, but the direction is flipped.

Sources

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