Stellantis NV recently announced a $1.1 billion deal aimed at acquiring a stake in Chinese electric vehicle maker Zhejiang Leapmotor Technologies Ltd. In an endeavour to provide more affordable Electric Vehicles (EVs), the company believes this strategic move will give it a competitive advantage amidst the expected flood of lower-priced exports from China.
Briefing the reporters on a phone call, the CEO of Stellantis, Carlos Tavares asserted, “The Chinese offensive is visible everywhere… we can be benefiting from this Chinese offensive rather than being a victim.”
This significant investment will result in Stellantis owning approximately 21% of Leapmotor. Indeed, more than the ownership, the deal will facilitate an essential strategic advantage for Tavares and his team.
The rising prominence of EVs in the global market, predominantly catalysed by the shift towards sustainable transportation, is expected to spur a surge in EV exports from China. A successful collaboration with Leapmotor insulates Stellantis from falling prey to potential pricing wars whilst also offering them an opportunity to tap into the vast potential of the Chinese EV market.
For the full details of this deal, see the original article on Bloomberg Law.