Stellantis & Leapmotor: Chinese Manufacturing in Europe

Stellantis has confirmed its plans to produce Opel branded electric vehicles alongside Chinese manufacturer Leapmotor at a European facility, as the automotive giant seeks to expand its manufacturing capabilities and reduce production costs through strategic partnerships.

The automotive manufacturer says it is evaluating the addition of a new production line at a facility in Spain to build Opel's C-SUV battery electric vehicle (BEV) model.

The company says it could reduce manufacturing costs by utilising Leapmotor International (LPMI) sourced components and "by leveraging the Chinese New Energy Vehicle ecosystem".

LPMI is a 51% Stellantis, 49% Leapmotor joint venture. Stellantis invested €1.5bn (US$1.57bn) to acquire 20% of Leapmotor in 2023.

EV manufacturing in Zaragoza

In an effort to significantly expand manufacturing output at Stellantis' Figueruelas facility in Zaragoza, Spain, the two companies are evaluating the addition of a new production line to manufacture Opel's new C-SUV BEV model, with a potential start of production in 2028.

Antonio Filosa, Stellantis CEO, says: "This plan to expand our successful partnership with Leapmotor, a trusted peer and one of the fastest-growing, most respected new energy vehicle producers globally, is a true win-win for both of us."

"It is expected to support production and advance localisation in Europe of world-class manufacturing of electric vehicles at affordable prices to meet customers' real-world needs," Antonio adds.

"Today's announcement reflects our intent to deepen our partnership and take one more step towards even greater collaborations in the future."

Reuters reported in early 2026 that the new Opel model would have a targeted annual output of 50,000 vehicles, citing people familiar with the matter.

Production Expansion in Madrid

In a move to secure the future of Stellantis' Villaverde, Madrid facility, the company's expansion "may include the allocation of a new Leapmotor vehicle" to the plant, including "potential timing from the first half of 2028", according to a press release.

The Citroën C4, currently manufactured at the Villaverde facility, is set to end production. Stellantis says the plant's ownership is under discussion for potential transfer to LPMI's Spanish subsidiary.

Stellantis says that manufacturing in Villaverde would be in line with Made-in-Europe upcoming requirements issued by the EU. The vehicles would be commercialised by LPMI in the European, Middle East and Africa markets.

Supply Chain Collaboration

The companies would also cooperate in the area of procurement through LPMI. Stellantis says the objective would be to boost price competitiveness "by leveraging the Chinese New Energy Vehicle ecosystem", while using European "supply chain capabilities" to strengthen "resilience and accelerate time-to-market for new models".

Zhu Jiangming, Leapmotor's Founder and CEO, says: "Leapmotor's leading-edge technologies, combined with Stellantis' global reach, deep regional roots and much-loved automotive brands, would make this a uniquely powerful partnership."

"Our joint venture, Leapmotor International, has quickly shown its benefits for both partners and in less than three years, has seen us launch our brand on five continents and significantly grow our international reach and reputation," Zhu adds.

Manufacturing Competitiveness and Scale

Long-term planning and government funding has allowed China to dominate critical supply chains in battery production. Unlike Western countries, China has the capacity to mobilise significant portions of its economy over multiple years towards its manufacturing objectives.

According to a press release issued by the State Council of the People's Republic of China, the country plans to make BEVs the mainstream of new car sales by 2035. In 2021, China accounted for half of global electric car sales; this share grew to almost two-thirds in 2024, according to the International Energy Agency (IEA).

On cost, Chinese brands can compete with EV offerings from European manufacturers, with manufacturing both faster and cheaper than European brands. In China, EV makers face fierce and intense competition from multiple brands conducting price wars.

Chinese automakers are increasingly expanding into Europe. In March 2024, Leapmotor opened a European Innovation Centre in Munich, its first outside of China. Leapmotor recently marked its first year in the UK and, in that time, built a 2.2% electric car market share, having registered 7,369 EVs.