Stellantis Expands Leapmotor EV Production in Spain

Stellantis announced on May 8 that it will expand its partnership with China's EV maker Leapmotor, adding production of Leapmotor's B10 model and a jointly developed electric C-SUV under the Opel brand at its Zaragoza plant in Spain. The owner of Jeep and Peugeot will also cooperate with Leapmotor on parts purchasing as part of the deepened collaboration.

Production Expansion Details

The Zaragoza facility in Spain will become a key production hub for the expanded partnership. The companies are also considering assigning additional Leapmotor models to Stellantis' Villaverde plant near Madrid beginning in 2028, according to Reuters.

Joint Venture Ownership Structure

The companies may transfer ownership of the Villaverde site to Leapmotor International, their Stellantis-led joint venture, as part of the long-term arrangement.

Strategic Context

The expansion reflects Stellantis' strategy to leverage Chinese EV technology and production expertise in Europe. The choice of Spain as a production location allows Stellantis to manufacture vehicles within the European Union, enabling the company to circumvent tariffs on EVs imported from China while utilizing existing European factory capacity to serve the broader European market.

According to CEO Carlos Tavares, the Leapmotor venture could serve as a template for future collaborations with other Chinese automakers, signaling a broader shift in how established Western carmakers are partnering with Chinese companies to develop competitive lower-priced EV offerings in Europe.