Lead

Chinese electric vehicle (EV) makers are moving to establish manufacturing footholds in Europe, with plans to use or acquire idle assembly plants owned by legacy automakers. Among the most concrete steps, Leapmotor — the Hangzhou-based EV company — has agreed with its shareholder Stellantis to add a production line at a Spanish plant previously earmarked for Opel, a move that could see cars built there as early as this year.

Coverage Comparison

Reports from the South China Morning Post describe a broader trend: Chinese EV manufacturers, from BYD to Leapmotor, are actively seeking manufacturing assets in Europe, with BYD confirming talks with Stellantis about using idle facilities. Analysts suggest this reflects a shake-up in the global auto industry, as Chinese automakers leverage design and manufacturing expertise to become international players.

Key Claims

  • Leapmotor and Stellantis have agreed to add an EV production line at the Figueruelas plant in Zaragoza, Spain, which was previously earmarked for petrol-powered Opel models. According to a statement from Stellantis, production is expected to start as early as this year, with the facility set to build new Opel-branded electric SUVs and B10 models.
  • Stellantis, which owns a 21% stake in Leapmotor, deepened its strategic partnership with the Chinese company last week. The partnership includes a joint venture, Leapmotor International, established in 2023, in which Leapmotor holds a 49% stake and Stellantis holds 51%.
  • Leapmotor opened its first overseas research and development hub in Munich less than two months before the Spain announcement, aimed at tailoring models to international customers.
  • BYD, the world's largest EV maker, said it was in talks with Stellantis about using idle assembly facilities in Europe, as it expands presence in markets like Italy.
  • The European Commission has proposed restrictions on foreign investors, including capping foreign investment at 49%, requiring at least half of a firm's workforce to be European, and mandating technology-sharing provisions. These measures were outlined in March, and the China Association of Automobile Manufacturers has described certain terms as "systematic discrimination."

Perspectives

The Chinese Manufacturers' Perspective

Chinese EV makers are seeking expansion into Europe to access higher profit margins and capitalize on growing demand, according to analysts. The partnership with Stellantis enables Leapmotor to localize production, which may help avoid tariffs and other trade barriers.

The European Industry's Perspective

European automakers have entered partnerships with Chinese companies to cut costs and access technology. Renault, for example, set up an R&D centre in Shanghai that helped halve the production time of its Twingo model to 21 months. However, Brussels is considering protective measures, and the proposed Industrial Accelerator Act has drawn criticism from Chinese industry groups.

The Suppliers' Perspective

European automotive suppliers stand to benefit from an influx of Chinese carmakers, according to Francis Wedin, executive chair of Vulcan Energy Resources, a lithium producer developing a project in Germany. "On the downstream side – like batteries and EVs – Chinese entry is a massive opportunity for Europe because China is the clear leader in technology and production costs," Wedin said, noting the trade-off of forming local joint ventures to protect European champions.

Corrections and Clarifications

This article draws on multiple reports from the South China Morning Post. No corrections have been issued to date. The production timeline for the Spanish plant is based on Stellantis's statement and may be subject to change.