Stellantis CEO Carlos Tavares and Leapmotor founder and CEO Zhu Jiangming shook hands on the new partnership between the two companies.
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Automobile manufacturers star The two companies said they expect overseas sales of Chinese-made electric vehicles to grow rapidly starting later this year through a new joint venture with Zero Sports Cars.
company say tuesday Starting in September, the Chinese-made Zero sports car will go on sale through Stellantis’ distribution network, including dealers in Europe – France, Italy, Germany, the Netherlands, Spain, Portugal, Belgium, Greece and Romania.
These markets will be followed by the Middle East and Africa, India and Asia Pacific, and South America by the end of 2024, the companies said.
Stellantis Chief Executive Carlos Tavares said on Tuesday after a news conference in Hangzhou, China, where Leapmotor is headquartered, that expansion plans do not currently include distribution in the United States. Tavares said that was partly due to new U.S. tariffs on Chinese-made electric vehicles and cited other reasons.
The Biden administration announced tough new tariffs on billions of dollars worth of Chinese imports on Tuesday, including a quadrupling of tariffs on electric vehicles imported from China, from 25% to 100%.
“There are very limited Chinese products on the U.S. market, so it’s not a priority for us,” Tavares said. “Europe has a lot of problems because we see Europe taking a very different approach to this problem… It looks like the U.S. is taking a very strong protectionist approach. And right now, I think Europe is keeping its markets reasonably open.”
According to Stellantis and Zero Sports Cars, the joint venture’s expansion plans include producing at least six electric vehicles by 2027. The companies said the cars will initially be budget vehicles and are expected to complement Stellantis’ current vehicle lineup.
The news comes amid growing geopolitical tensions in the United States, Europe and elsewhere over Chinese-made electric vehicles. Many inside and outside the auto industry worry that cheaper Chinese-made cars will flood the market, undercutting the price of domestically produced electric vehicles.
“From a Stellantis perspective, our stance is competition. We compete with the Chinese automakers and we compete as fiercely as possible because that’s the best way to learn. That’s the best way to maintain the global competition we’re in now. part of the best way,” Tavares said.
Tavares said on Tuesday that the Chinese automaker, which he previously called Stellantis’ biggest rival, was expected to grow rapidly internationally with or without the help of joint ventures.
“Whether I like it or not, with or without me, the Zero Roadster is going to come to Europe anyway… Maybe not as fast, maybe not as intense, but they will go to Europe,” Tavares said. “All I’m doing is trying to be opportunistic about the dynamics created by the Chinese automakers.”
As of September, Chinese companies accounted for 8% of all-electric vehicle sales in Europe, and their share may increase to 15% by 2025. European Union Said it last year. The EU believes that the price of Chinese electric vehicles in the European market is about 20% lower than the price of local models.
Employees work on the assembly line of the C11 electric SUV at the Zero Sports car factory of Chinese electric vehicle start-up company in Jinhua City, Zhejiang Province, China on April 26, 2023.
Visual CG | Visual China Group | Getty Images
The influx of Chinese electric vehicles has prompted the European Union to roll out government support for the industry.
Zhu Jiangming, founder, chairman and CEO of Zero Sports Car, said: “The cooperation between Zero Sports Car and Stellantis demonstrates a high level of cooperation efficiency and opens a new chapter in the global integration of China’s smart electric vehicle industry.” said in a press release. “We believe that this cooperation can help Zero Sports Car become a respected world-class smart electric vehicle company.”
The two companies declined to disclose the sales forecast for Leapbo through the Stellantis sales network. It is expected that the number of Leapa sales points will increase from 200 to 500 by 2026. Leapmotor reported deliveries of 144,155 vehicles in 2023. , an increase of about 30% compared with the previous year.
Stellantis holds a 51% stake in the joint venture with Zero Sports Cars announced earlier this year, which included a €1.5 billion investment in Zero Sports Cars and holds approximately 21% of the company.
As part of the deal, Stellantis has the export and sales and manufacturing rights for the Zero sports car outside Greater China.
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