China gives green light to Stellantis-Leapmotor joint venture, sources say
Reuters
Published Mar 06, 2024 08:06AM ET
Updated Mar 06, 2024 09:45PM ET
By Gilles Guillaume
PARIS (Reuters) - A proposed joint venture that would allow world No. 4 automaker Stellantis (NYSE:STLA) to build and sell Leapmotor (HK:9863)'s electric vehicles outside China has received approval from a Chinese regulator, according to two sources familiar with the matter.
China's National Development and Reform Commission (NDRC) has given its approval for the joint venture, said one of the sources, adding that the deal is still waiting on regulatory approval in other markets.
Stellantis said last October it was buying a 21% stake in Leapmotor in a $1.6 billion deal that would give it a fresh shot at China, the world's biggest car market by sales, and announced the joint venture.
Under that deal, Stellantis would have exclusive rights to build, export and sell Leapmotor products outside China, a first for a legacy western automaker. Stellantis would own 51% of the joint venture.
Leapmotor said in a statement to Reuters on Thursday the executive team of the joint venture is in place as C10, the first Leapmotor EV model planned for overseas markets, will soon start sales from Germany, France, Italy and Spain.
Earlier, Leapmotor had said first shipments to Europe would come in the second half of 2024.
Leapmotor didn't respond to a request for comment on the NDRC approval.
Stellantis declined to comment, and representatives of the NDRC could not be reached.
Last month Stellantis CEO Carlos Tavares said the automaker could build EVs based on Leapmotor technology in Europe, North America or other markets where it needs competitively-priced models to compete with Chinese EV makers.
The proposed joint venture comes amid rising trade tensions between China and the European Union, which is investigating whether Chinese EV makers benefit from unfair government subsidies.
The European Commission said on Wednesday it will start customs registration of Chinese EV imports, meaning they could be hit by retroactive tariffs if the EU's trade investigation does conclude they receive unfair subsidies.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.