Interview: Stellantis-Leapmotor partnership win-win deal: Dutch auto expert

THE HAGUE, Nov. 5 (Xinhua) -- The cooperation between Stellantis, one of the world's leading automakers, and new energy vehicles (NEV) frontrunner Leapmotor from China is a "win-win" collaboration, a Dutch auto expert said in a recent interview with Xinhua.

"For Stellantis it is a strategic move, to get closer to the Chinese market and to profit from the technological advantage and the knowledge of Leapmotor and improve the level and variety of their electric cars," said Joeri van Dam, Electric Vehicle (EV) expert and co-writer of the Dutch EV Yearbook.

He said that the Chinese car market is ahead of Europe in terms of electrical technology.

"For Leapmotor it means a smooth entrance to Europe in which it can benefit from Stellantis' network and points of sales," he said. "To build a name and reputation all by yourself costs a lot of time and money."

"In that sense, it is a logical deal," he told Xinhua.

Last week, the Amsterdam-based Stellantis unveiled a plan to invest about 1.5 billion euros (1.6 billion U.S. dollars) to acquire 20 percent of the shares of Leapmotor. The two companies also announced a global strategic partnership to establish an international joint venture.

China is the world's biggest manufacturer of electric cars. Leapmotor delivered about 111,000 NEV units in 2022, one of the highest rates among China's NEV automakers, while Stellantis shipped over 6 million vehicles worldwide that same year, according to official statistics.

The deal between Stellantis and Leapmotor is certainly not the first one struck between a Chinese automaker and an international partner. Swedish giant Volvo has Chinese Geely as its parent company and the Volkswagen Group, Germany's leading carmaker, grew out to be one of the most successful international partners in China's automobile industry.

"Before the COVID-19 pandemic, we could really see a wave of Chinese car brands coming," Van Dam said, adding that a second wave is coming now, for example, the Leapmotor. "More cooperations will follow, " he said.

Several Chinese brands, including BYD, the top-performing auto brand in China, SAIC and Lynk&Co, as well as Volvo owned by Geely, have already entered the European market.

"China is a frontrunner in the field of electric cars," said Van Dam. He has co-authored three Dutch EV Yearbooks since 2021 and is now planning its 2024 edition, which is expected to include all electric cars available for 2023, and incoming electric cars in 2024.

"In the Netherlands, between 20 and 30 percent of new cars are electric. In China, 60 percent, and the market is many times larger," said the expert. (1 euro = 1.07 U.S. dollars)