Stellantis and Leapmotor Halt Production Plans in Poland

SHANGHAI (Reuters) – Stellantis and its Chinese partner Leapmotor (HK:9863) have scrapped plans to produce a second electric vehicle model at Stellantis's Polish plant. Instead, they are considering Stellantis factories in Eisenach, Germany, and Trnava, Slovakia for the production of the B10 electric crossover.

Both companies declined to comment, and the individuals with knowledge of the situation requested anonymity due to its private nature. This shift follows guidance from the Chinese government advising automakers to halt significant investments in European countries that support additional tariffs on Chinese-made EVs.

Automakers were informed at a meeting with China’s Ministry of Commerce on October 10 to pause large-scale investment plans in EU countries backing the tariff proposal. Leapmotor and Stellantis showcased the B10 EV at the Paris Motor Show just days later, which was celebrated as a milestone in their partnership.

Poland was among the 10 EU members supporting tariff decisions of up to 45% on imported Chinese EVs. Conversely, German and Slovakian governments opposed these tariffs, while 12 other states abstained from the vote, which took effect on October 30.

Stellantis and Leapmotor haven't disclosed the new production location for the B10 SUV, and it's unclear if Beijing's pressure influenced this decision. China’s State Council Information Office and Ministry of Commerce did not respond to comment requests, nor did Poland's industry ministry.

Stellantis's Tychy plant in Poland currently produces the T03 compact EV using components shipped from China, but there is uncertainty regarding the T03's production status and potential job impacts.

Shifting production to Germany would increase costs significantly compared to Poland, an insider mentioned. The B10 marks the beginning of Leapmotor’s series of EVs aimed at markets outside China, including Europe, where it started sales in September.

Carlos Tavares, Stellantis CEO, emphasized that the partnership with Leapmotor and the B10 aims to provide "high-tech, affordable" EVs to consumers outside China. Stellantis holds a 51% stake in this joint venture, with Leapmotor owning the remaining 49%.

The German and Slovakian governments did not respond to queries. Opel also remained unavailable for comment. Under Chinese law, companies require governmental approval for direct investments abroad.