Stellantis, the group that includes Fiat, is focusing on China to develop its electric cars: The French-Italian giant announced that it invested 1.5 billion euros to purchase 20% of Leapmotor, one of the Chinese battery vehicle manufacturers. It’s a move that effectively positions Stellantis among major Europeans who see China as a development opportunity rather than enemy number one in the race for a share of the emerging electricity market. It is no coincidence that when commenting on the investment, Stellantis boss Carlos Tavares openly criticized the European Commission’s decision to launch an investigation into Beijing’s massive state subsidies for the automotive sector. low cost chinese electric vehicles.
Tavares stated that Stellantis is not a part of this organization and said, “Since we are faced with global problems, we need to adopt a global mentality. We do not support a fragmented world. We love competition. The best way to solve such problems is not to initiate an investigation.” European automobile companies asking the EU Commission to open an investigation into China. This is a statement that refutes rumors that Stellantis, together with fellow transalpine giant Renault, is pressuring Brussels through President Emmanuel Macron to initiate the process of imposing taxes on Beijing.
Despite the rumors, what raises suspicions in Paris is the current structure of the production chain of European companies. If Germany, especially Volkswagen, has cemented a mutually beneficial relationship with China, the same has not happened for Renault and Stellantis so far. It is no coincidence that Berlin received the EU investigation coldly and warned of the risks of negative repercussions on the European automotive industry. Welcoming the Brussels initiative, French Minister Laurence Boone said: “As with solar panels, we will not allow our market to be flooded with overly subsidized electric vehicles that threaten our companies.”
Boone’s words somewhat echoed the alarm Tavares raised at the Paris Auto Show a year ago: “There’s no reason” to make it easier for the Chinese to access the European market without changing the opposite, he said last October. Just a month ago, Stellantis withdrew from a partnership with China’s Guangzhou Automobile Group to develop an electric Jeep. “We want the same conditions,” the head of the Franco-Italian group reiterated, adding that Chinese producers would only be “welcome in Europe” if Europeans could access the same conditions in China.
Clearly, Tavares now sees Leapmotor as a way to achieve that level playing field. Stellantis wants to increase Leapmotor sales in China and the rest of the world, including Europe, but also wants the French-Italian group’s car fleet to “leverage Leapmotor’s EV ecosystem in China to contribute to the achievement of key electrification targets.” Tavares guarantees that the first Leapmotor models appearing in Europe as a result of the joint venture with Stellantis “will be available within two years at the latest.”
Follow today on the new WhatsApp channel too
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
