Eric Haan, director of the Stellantis Poissy factory, poses for a photo next to vehicles at the international car manufacturing plant Stellantis in Poissy, west of Paris, on April 15, 2026.
Simon Wohlfahrt Afp | Getty Images
LONDON – The latest communication between the Jeep maker Stellantis and China’s Leapmotor is seen as a watershed moment for the future of European car manufacturing.
In an agreement announced late last week, Stellantis said he will expand his partnership with Leapmotor, paving the way for the latter to begin production of a model to be sold in the European market in 2028.
Leapmotor will also work with the multinational conglomerate, which owns brands including Jeep, Dodge, Fiat and Chrysler, to jointly develop an electric SUV under the Opel brand, which will be produced at the Stellantis plant in Zaragoza, Spain.
The move appears to be designed to strengthen Stellantis’ European operations, while providing Leapmotor with a platform to bypass the European Union’s “Made in Europe” production targets, as well as avoid tariffs on electric vehicles imported from China.
Stellantis is not alone in exploring the possibility of cooperation with Chinese car manufacturers. US car maker Ford it is reported that he is in talks with the Chinese company Geely to build a relationship between Europe and Germany Volkswagen he said he was open to sharing underutilized European factories with Chinese car companies as part of an effort to cut costs.
The idea of such a relationship should not be only with the Chinese, said Stellantis CEO Antonio Filosa at the FT Future of the Car conference on Tuesday. His comments came in response to a question about whether Western car brands dealing with Chinese car brands could serve as a playbook for the industry.
“Obviously, the Chinese OEMs are strong players that come with great potential in Europe … but we can also look at others,” Filosa said at the London conference.
“Leapmotor is a Chinese partner that we have – and we really value that partnership. That’s why we took it. [to] it’s the next level but there are many things that can be done.”
CNBC contacted Ford and Volkswagen and is awaiting a response.
The tense situation comes as Western auto giants grapple with problems in many areas.
Leading original equipment manufacturers are caught in a perfect storm as they face headwinds from rising production costs, US tariffs, intense competition, supply chain disruptions and regulatory pressures, and the transition to the powerful electric vehicle.
Stellantis was one of the first Western automakers to sign a joint venture agreement with a Chinese manufacturer when it acquired a nearly 21% stake in Leapmotor by 2023.
Leapmotor CEO Zhu Jiangming on Friday described the company’s technical expertise, combined with Stellantis’ global reach, regional roots and brand recognition, as “a partnership with unique strengths.”
‘Point of no return’
Auto analysts said that while the relationship between European and Chinese car companies may be successful in the short term, the legacy auto giants will have to be wary of some long-term risks.
For Western automakers, especially those that are lagging behind in electronics and software, this partnership is seen as the only option to “stay in the game in Europe,” according to Julia Poliscanova, executive director of vehicles and e-mobility supply chains at the Transport & Environment campaign group.
Workers work at the Leap Energy factory owned by Chinese automaker Leapmotor in Huzhou, China’s Zhejiang province on April 26, 2026.
Adek Berry | Afp | Getty Images
“In the short term, European automakers need to develop their factories and Chinese automakers want to enter the market, so it makes sense. But I worry about what that really means in the long term,” Poliscanova told CNBC.
“If they help the Chinese companies to be aware of that product and if people get the car and see that it’s not such a bad car, I think it will be a thing of no return,” said Poliscanova.
“So, there’s a real risk, and I think it’s a good short-term strategy, I think it’s very important for European car manufacturers who want to be in business in 2030 not to let their foot stop producing those electric models in parallel.”
