Stellantis and Leapmotor, it's on: Chinese cars for sale in Italy too

In fact, decisions on possible production in Europe will also be made 'on the basis of the transformation costs of the factories and taking quality into account, this is how we will make decisions and these are the factors that will guide the choices,' said Tavares, during the call with journalists, explaining that 'for now no decisions have been made, but the criteria on which we will base ourselves are to assess where the highest quality is, where the best costs are, and whether a specific factory has the necessary capacity'.

Many analysts also expected the agreement to evolve into an exchange of technology. Perhaps with the T03 platform being used for new small cars, such as the possible future 500 Electric. Hypotheses that for now are not on paper. 'At the moment,' Tavares clarified, 'the agreement does not envisage technology sharing, but the sale of Leapmotor models outside China. We will evaluate on a case-by-case basis whether to use Stellantis' production facilities in the various regions'. In practice, Stellantis acts as a mere distributor and what Tavares has in fact 'sold' to the Chinese is the gigantic European network of local distributors, dealers and spare parts logistics partners. This is a large area of business in which the Chinese brands are likely to find themselves in trouble.

"With Leapmotor, we will evaluate on a case-by-case basis whether to export from China or use Stellantis' production facilities in the various regions," the Stellantis CEO further explained. "The important thing is to emphasise that we are able to deal with all kinds of scenarios and we will adjust flexibly in each region (US, Europe, China, ed.), making different decisions depending on the various countries and the needs of each market. The aim is to 'proceed pragmatically'.

In any case, 'we want this joint venture to be a success, to bring smart and affordable electric vehicles to the market quickly,' Tavares added, explaining that the agreement will bring a number of benefits to both Stellantis and Leapmotor. "The first is the acceleration with which we bring Ev to the market, the second is that we provide excellent technologies, the best available, cost-effective. The third point will be the fact that Stellantis will be able to have more Evs available to bring to market, making progress in the execution of the Dare Forward 2030 strategic plan," concluded the Franco-Italian group's number 1.

Tavares has always spoken in very alarmist terms of the arrival of Chinese competition in Europe, emphasising its danger on the basis of price competitiveness that is unattainable for European manufacturers. Today he emphasised that the race is nonetheless on and that there are not many choices in a Europe that limits duties to 10% (although in these days there is a heated debate on the advisability of raising barriers, a debate in which German manufacturers are opposed due to their strong interests in China).

'This year,' explained the Portuguese top manager, 'Chinese manufacturers will conquer at least 10 per cent of the European market. It is a process now underway, we cannot stop it. We can only fit into this ongoing dynamic, and we are doing so thanks to Leapmotor'. Of course, this partnership could appear to be a Trojan horse for the Dragon's electric cars: Chinese manufacturers see exports as a crucial response to the slowdown in the domestic market. According to Tavares, 'the Chinese would come anyway'. Whereas 'with the joint venture we can use the situation to our advantage'.

President and CEO of Leapmotor, Zhu Jiangming, added that "the partnership between Leapmotor and Stellantis demonstrates a high level of efficiency and quality, and ushers in a new chapter in the global integration process of China's intelligent electric vehicle industry. By utilising Leapmotor's innovative technologies and cutting-edge products, with Stellantis' support inforeign distribution, services and marketing, we aim to offer customers around the world an exceptional driving experience and on-board comfort. We believe that this partnership will give Leapmotor further impetus to become a globally recognised intelligent electric vehicle manufacturer.

There was no lack of reaction in Italy. 'Tavares's statement,' commented the Minister for Enterprise and Made in Italy, Adolfo Urso, 'confirms our analysis. There must be at least a second car manufacturer in Italy. In Italy there is only one, which among other things intends to import and sell electric cars or at least Chinese cars in its network'. While Samuele Lodi, Fiom-Cgil national secretary and head of the mobility sector, demanded that 'the production and assembly of Leapmotor models be carried out in the Stellantis plants in Italy and that a round table be convened at the Prime Minister's Office with CEO Carlos Tavares, as we have been asking for some time as a unit'.