Stellantis & Leapmotor: Plans to Develop European-Chinese EV

Stellantis is in advanced talks with Leapmotor to jointly develop an Opel branded SUV.

The deal would see the Chinese car manufacturer's technology be used at Stellantis’ Zaragoza plant in Spain, according to a report from Reuters. 

The move comes after Stellantis took a US$26bn charge to scrap some fully electric models in February 2026. 

The potential deal

Talks between Stellantis and Leapmotor over the Opel project, codenamed O3U, started in late 2025 and an ​agreement could be reached as early as April 2026, Reuters reported after it says it spoke with three people familiar with the matter. 

The new model would share ​a common architecture with the Chinese automaker's B10 compact SUV, which will also be assembled later in 2026 for the European market at the Zaragoza plant.

Under the terms being discussed, Leapmotor would supply key technologies and components including electronic and electrical parts, while Opel would design the exterior, one of the sources said. 

A significant portion of the vehicle's development would take place in China. 

Production of the new Opel model is expected to start in 2028 with a targeted annual output of 50,000 vehicles, Reuters reported.

Building on earlier collaboration

Stellantis invested EUR€1.5bn (US$1.75bn) to acquire 20% of Leapmotor in 2023. Former Stellantis CEO, Carlos Tavares, said at the time of the deal: “As consolidation unfolds among the capable electric vehicles start-ups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China.

“We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours."

The two companies have also collaborated on a joint venture called Leapmotor International, which is a Stellantis-led joint venture with a 51/49 partnership between the two companies.

This heads up the production and sales of Leapmotor cars outside of China. 

According to a Bloomberg report, Stellantis is also in talks with Leapmotor to make EVs at an idle plant in Ontario, Canada.

Leapmotor’s European expansion

In March 2026, Leapmotor opened a European Innovation Centre in Munich, its first outside of China as the company seeks to expand internationally. 

Leapmotor also marked its first 12 months in the UK and, in that time, built a 2.2% electric car market share, having registered 7,369 EVs.

The EV market 

Stellantis, with brands including Opel, Alfa Romeo, Jeep, Dodge, Vauxhall, Peugeot, Chrysler and Ram, announced a US$26bn write-down related to electrification in early 2026. This resulted in a US law firm launching an investigation into potential breaches of federal securities laws.

When announcing its 2025 results, Stellantis said in a statement it was “resetting the product plan and EV supply chain to reflect customer demand and shifting regulations”. 

However, the latest move implies that EVs are still an integral part of Stellantis’ plan, particularly in Europe. The company may be seeking to compete with other Chinese brands, such as BYD, who can manufacture EVs quickly and cheaply. 

Leapmotor’s T03 retails at £15,995 (US$21,480), whereas BYD currently sells its cheapest model, the Dolphin Surf, in Europe at £20,470.38 (US$27,177).

Interest in EVs has grown significantly in Europe over 2026, with Tesla and BYD recording strong sales, likely fuelled by price conscious consumers looking to offset rising fuel costs.