The alliance between Stellantis and the Chinese electric vehicle manufacturer Leapmotor has just taken a qualitative leap that goes far beyond what either partner had announced until now. What began in 2023 as a 21% stake acquired by Stellantis in Leapmotor, and evolved into a commercial joint venture with sales rights outside of China, transformed this Friday, May 8, 2026, into a full-fledged industrial partnership. The two companies simultaneously announced in Amsterdam and Hangzhou their intention to expand their cooperation for joint production in Europe, with implications extending from assembly lines in Spain to the ownership structure of at least one factory.
The heart of this new agreement beats in Zaragoza. The Figueruelas factory in Zaragoza, a historic production site for Opel where more than ten million units of the Opel Corsa have been manufactured since 1982, will be the stage for the production of a new electric SUV from Opel for the C segment. An additional production line is being evaluated, with a potential start of production in 2028, at a facility that currently manufactures the Peugeot 208 and the Lancia Ypsilon. Leapmotor's B10 SUV could also arrive at Figueruelas as early as 2026, making the Spanish factory one of the most strategic European centers for the electrification of the entire group.
The new mid-size SUV, which will compete directly with models such as the Volkswagen Tiguan and the Hyundai Tucson, is already in joint development, with engineers from Opel working side by side with their counterparts at Leapmotor in China. The vehicle will benefit from components supplied through the Leapmotor International joint venture, which, according to both companies, will make it significantly more affordable for European consumers without sacrificing the design and engineering quality that the German brand demands.
The second major novelty of this agreement is equally ambitious. The two companies are considering the start of production of Leapmotor vehicles at the Villaverde factory in Madrid, which is set to stop manufacturing the Citroën C4, a model that represents the majority of its current production. However, the more structural decision goes beyond the simple allocation of models: the transfer of ownership of the Villaverde factory to the Spanish subsidiary of Leapmotor International is under discussion, a change that would represent a profound alteration in Stellantis's industrial structure in Spain. The vehicles produced in Villaverde would comply with future Made-in-Europe requirements and would be marketed by Leapmotor International in European and Middle Eastern and African markets.
The strategic dimension of this partnership becomes even clearer when considering the third pillar of the agreement: joint purchasing. The two companies will cooperate in the acquisition of automotive parts and components through Leapmotor International, with the aim of benefiting from the combined scale and established knowledge of Leapmotor in electric vehicle technology. The stated goal is to leverage the Chinese ecosystem of new energy vehicles to enhance price competitiveness, while utilizing the European supply chain to strengthen resilience and accelerate the time to market for new models. It is a logic of complementarity that openly recognizes that China has cost and speed advantages that Europe cannot ignore.
Antonio Filosa, CEO of Stellantis, did not hide his enthusiasm for the scope of this announcement. “This plan to expand our successful partnership with Leapmotor, a trusted partner and one of the fastest-growing and most respected new energy vehicle producers globally, is a true win-win situation for both. It will help localize world-class electric vehicle production in Europe at affordable prices to meet the real needs of customers.”
For Leapmotor, the agreement resolves a concrete and urgent strategic problem: European production allows the Chinese brand to avoid the European Union tariffs on electric vehicles manufactured in China. For Stellantis, the benefit is equally direct: underutilized European factories gain production volume, the group's brands gain access to battery technology and electric components at competitive costs, and the group strengthens its position in the affordable electric vehicle segment, precisely where Chinese competition has been most devastating for traditional European manufacturers.
Leapmotor International operates as a joint venture with 51% ownership by Stellantis and 49% by Leapmotor, holding the exclusive rights to sell and produce Leapmotor models outside Greater China. This expansion agreement, subject to the conclusion of definitive contracts and the usual regulatory approvals, represents the most significant evolution of this partnership since its inception, and places Stellantis in a unique position in the European electric vehicle market: with one foot firmly in Chinese technology and the other rooted in European production and industrial identity.
