Leapmotor receives a $1.6 billion investment from Stellantis

On Wednesday, the Jeep maker Stellantis reported that it intends to invest roughly $1.6 billion, or €1.5 billion, in Leapmotor, a Chinese producer of electric vehicles.

The firms announced late on Wednesday that Stellantis intends to invest roughly $1.6 billion, or €1.5 billion, in Leapmotor, a Chinese producer of electric vehicles.

In a joint statement, the European-based manufacturers of Jeep, Ram, and Leapmotor announced the formation of a strategic collaboration and joint venture with the objective of growing the Chinese electric vehicle manufacturer's sales both domestically and internationally.

Stellantis stated that in order to reach its own goals for switching to electric vehicles, it anticipates benefiting from Leapmotor's "tech-first EV ecosystem" in China.

Stellantis will own about 20% of Leapmotor after the investment. The firms added that the joint venture, which is 51% Stellantis led, will be the only one with the authority to export and market Leapmotor automobiles outside of China.

Leapmotor sold 111,000 electric vehicles in 2022, concentrating on the mid-to high-end segment of the Chinese EV market. The BEV T03, the SUV C11, and the C01 car are the three EV models that have been released thus far.

Leapmotor's Hong Kong-traded shares, which are based in Hangzhou, China, dropped 9.2% on Thursday.

The multinational carmaker Stellantis N.V. was created through the union of the French PSA Group and the Italian-American giant Fiat Chrysler Automobiles. The company's main office is in Amsterdam.