Stellantis Group invests 11.6 billion to become a shareholder of Leapmotor and will establish a joint venture

At the same time, the two parties will establish a joint venture called "Leapmotor International" with a 51%:49% ratio, and the Stellantis Group will appoint the CEO of the joint venture.

With the exception of Greater China, the joint venture has the exclusive right to export and sell to all other markets around the world, as well as the exclusive right to manufacture Leapmotor products locally. Leveraging the Stellantis Group's extensive global business assets, strengths and accumulation, the joint venture will accelerate and expand Leapmotor's global sales, and is expected to begin exporting in the second half of 2024.

A traditional multinational automaker and a new Chinese automaker are forming a joint venture for the global market, and this form of cooperation is once again an industry first.

Leapmotor said that the cooperation between the two parties will increase Leapmotor's sales in the Chinese market, and will also rely on the Stellantis Group's mature business layout in other global markets to increase Leapmotor's sales in local markets, which will start in the European market. The Stellantis Group also intends to use Leapmotor's excellent cost-effective electric vehicle ecosystem to help Stellantis achieve the electrification goals in its "Dare Forward 2030" strategic plan. At the same time, both parties remain open to further exploring mutually beneficial synergies.

Carlos Tavares, global CEO of Stellantis Group, said: "With the consolidation among the stronger electric vehicle startups in the Chinese market, it is becoming increasingly clear that a small number of efficient and flexible new electric vehicle forces such as Leapmotor will occupy the mainstream market segments of the Chinese electric vehicle market. We believe that now is the best time for Stellantis Group to support it and play a leading role in Leapmotor's global expansion plan. Leapmotor is one of the most impressive electric vehicle startups and, like Stellantis, has a similar technology-leading philosophy and entrepreneurial mentality. With this strategic investment, a potential area in the Stellantis Group's business model will be developed, and Stellantis Group will also benefit from Leapmotor's competitiveness in China and other markets. I would like to thank Mr. Zhu Jiangming and the teams from both our two great companies for their leadership and partnership in creating this new opportunity for Stellantis Group and Leapmotor."

Zhu Jiangming, founder and CEO of Leapmotor, said: "Today is an important milestone in the development history of Leapmotor. I am very happy to witness this important moment with Mr. Tang Weishi and his team. Through our independent and comprehensive technical research and development capabilities, Leapmotor has brought the best electric vehicles in its class to the market in the most cost-competitive manner. We believe that the strong combination formed in the ever-changing market environment will bring a mutually beneficial partnership to both parties. Together with the Stellantis Group, we will continue to innovate in the fields of technology and business synergy, and sell Leapmotor's products around the world."

Founded in 2015, Leapmotor is the world's first new energy vehicle company to adopt CTC battery chassis integration technology in mass-produced models. This year, it launched the "Four-Leaf Clover" centralized electronic and electrical architecture, which can achieve seamless and efficient collaboration between the core components of smart electric vehicles.

In 2022, Leapmotor will deliver 111,000 new energy vehicles, closely following the sales of Wei, Xiaopeng and Li Auto. In the next three years, Leapmotor will build A-class to E-class "pure electric + extended-range dual-power" smart cars based on one technical architecture and three vehicle platforms.

The Stellantis Group was established in early 2021 through the merger of the former PSA Peugeot Citroen Group and the former Fiat Chrysler Group. Currently, the Stellantis Group has 14 iconic automobile brands and 2 mobility service units, with a presence in more than 130 countries around the world and manufacturing operations in more than 30 countries.

In 2022, Stellantis Group's global sales exceeded 6 million vehicles, with net revenue of 179.6 billion euros and net profit of 16.8 billion euros. In the first half of 2023, Stellantis Group achieved net revenue of 98.4 billion euros and net profit of 10.9 billion euros, and with an adjusted operating profit margin of 14.4%, it became one of the most profitable companies in the global automotive industry.

According to the plan, in the next decade, the Stellantis Group will invest more than 50 billion euros in electrification to achieve its electrification goals in the "Dare Forward 2030" strategic plan: by 2030, all passenger cars sold by the group in Europe will be pure electric vehicles, and 50% of passenger cars and light trucks sold in the United States will be pure electric vehicles. To achieve the above sales targets, the Stellantis Group will ensure a battery capacity reserve of approximately 400GWh, including battery production capacity support from its six battery manufacturing plants in Europe and North America.

At the same time, Stellantis Group plans to become a net zero carbon emission company in 2038. If all its direct and indirect carbon emissions are included, only a single-digit percentage of the group's carbon emissions will require carbon compensation. In addition to the strategic cooperation announced with Leapmotor, Stellantis Group will continue to be committed to implementing a light asset business model in China for its brands in China.