Stellantis will start building vehicles for Chinese auto brand Leapmotor at its historic Fiat plant in Poland as part of its accelerating foray into the European battery-electric-vehicle market.
Last year the group bought a 21% stake in Leapmotor in a $1.6 billion deal to help its own sales strategy in China. The deal saw both companies enter a joint venture, giving Stellantis exclusive rights to build, export and sell Leapmotor products outside China. This month Chinese regulators approved a JV in which Stellantis has a 51% stake.
Now, sources tell Reuters Stellantis' Tychy plant in Poland will be the first plant to start production in Europe. Leapmotor's T03 small BEV could start rolling off assembly lines before the end of June, using the semi-knocked-down (SKD) method involving turning partially assembled kits into finished vehicles.
With a claimed range of 174 miles (280 km), the T03 is already being imported into some European markets, including France, with prices starting at around €20,000 ($21,642). It is expected to compete against other budget models such as the Dacia Spring and BYD Seagull.
Sources say Tychy can achieve low costs for a product designed to be affordable for a broad range of customers, a source says. A Stellantis spokesperson declines to give the news agency a comment.
Leapmotor told Reuters this month that the joint venture's executive team is in place and that sales of another model, the C10 SUV, the first Leapmotor EV designed specifically for overseas markets, will start soon in Germany, France, Italy and Spain.
The Tychy plant makes several Stellantis vehicles, including gasoline and hybrid versions of the Fiat 500, Fiat 600, Jeep Avenger and new Alfa Romeo Milano, scheduled to be unveiled next month.
