Business at Stellantis in China is not good, but so are many other groups, starting with Volkswagen. To regain some momentum in this now very competitive market with local competition, Stellantis plans to cooperate with a Chinese company for the production of electric vehicles Bloomberg journalists report.

Stellantis will work on a partnership with Zhejiang Leapmotor Technologies, according to several internal sources within the group.

Will Stellantis vs. Volkswagen battle in China?

Following other groups, Stellantis is considering several options, such as an investment in a local electric car maker and a commercial partnership to help it grow in China. So far no agreement has been reached and discussions are still ongoing.

Other automakers, including Volkswagen Group, have also expressed interest in a potential tie-up with Leapmotor. Reuters reporters also reported talks between the German group and Leapmotor at the beginning of the month.

A strategy that is becoming more and more democratic

The partnership will fit into China’s asset relief strategy that Stellantis CEO Carlos Tavares announced following the closure of Jeep’s China plant last year. Carlos Tavares said last July that he was happy with the decision, also believing that rivals Volkswagen and General Motors were happy “under pressure” in China, in particular due to competition from local producers.

Stellantis still has a joint venture with Dongfeng Motor Group to sell Peugeot and Citroën in China. Meanwhile, Volkswagen said last month it plans to invest $700 million in Xpeng to jointly develop electric vehicles in China.

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