Stellantis expands Leapmotor partnership to build Chinese EVs in Spain
Money MovesTwo 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 SpainNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Overview
Updated May 27Stellantis 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.
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People Involved
Organizations Involved
Stellantis is the Dutch-headquartered automaker formed by the 2021 merger of Fiat Chrysler and PSA Group, owning 14 brands including Jeep, Peugeot, Opel, Chrysler, and Citroen.
Leapmotor is a Chinese electric vehicle maker based in Hangzhou, focused on lower-cost EVs using in-house electronics and integrated platforms.
LPMI is a 51/49 Stellantis-led joint venture based in Amsterdam that holds exclusive rights to sell and manufacture Leapmotor vehicles outside Greater China.
Timeline
October 2023 May 2026
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Stellantis to build Leapmotor EVs in Spain
Latest Strategic announcementThe company will produce the Leapmotor B10 in Zaragoza from 2026 and a second model in Madrid from 2028, using Chinese supply chains through LPMI.
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Filosa says Leapmotor will expand to Mexico and Canada
Strategic announcementStellantis 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.
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Stellantis unveils FaSTLAne 2030 five-year plan
Strategic announcementCEO 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.
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EU Commission proposes 70% local content rule for EV subsidies
RegulatoryThe 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.
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Stellantis books $26 billion in EV writedowns
FinancialFilosa scraps internal EV product plans and posts the largest single EV-related charge in auto industry history.
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Leapmotor B10 orders open in Europe
Product launchThe C-segment electric SUV lists at €29,900, undercutting most European-built rivals.
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Antonio Filosa named CEO
LeadershipStellantis board unanimously picks the 25-year veteran to run a strategic reset, effective June 23.
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Carlos Tavares leaves Stellantis
LeadershipThe architect of the Leapmotor deal exits after board confidence collapses over cost cuts.
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EU imposes definitive tariffs on Chinese EVs
RegulatoryBrussels applies countervailing duties of 17% to 35.3% on Chinese-built electric vehicles, on top of the existing 10% import duty.
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Leapmotor T03 and C10 reach European dealerships
Product launchFirst Leapmotor models go on sale across Stellantis dealer networks in nine European countries.
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Leapmotor International joint venture launches
CorporateA 51/49 Stellantis-led joint venture is set up in Amsterdam to handle Leapmotor sales outside China.
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Stellantis buys 21% of Leapmotor
InvestmentStellantis 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.
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.
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.
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.
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.
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.
VW dominated the Chinese passenger car market for two decades and earned billions in profits.
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.
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.
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.
Volvo stayed in Sweden and Belgium but gained access to Chinese suppliers, capital, and engineering. Sales recovered after years of Ford-era decline.
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.
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.
