Eric Hahn, director of the Stellantis Poissy plant, poses for a portrait next to a car at the Stellantis multinational car manufacturer’s plant in Poissy, west of Paris, on April 15, 2026.
Simon Wolfert | AFP | Getty Images
LONDON — Recent alliances between Jeep manufacturers Stellantis And China’s Leap Motor is seen as a watershed moment for the future of European car manufacturing.
In a deal announced late last week, Stellantis said it will expand its strategic partnership with Leap Motor and pave the way for Leap Motor to begin producing models for sale in the European market in 2028.
Leap Motor is also collaborating with the multinational conglomerate that owns well-known companies such as Jeep, Dodge, Fiat, and Chrysler to jointly develop an Opel-branded electric SUV, with production to take place at the Stellantis factory in Zaragoza, Spain.
The move appears aimed at strengthening Stellantis’ European operations, while also providing Leap Motor with a platform to circumvent the European Union’s “Made in Europe” manufacturing target and avoiding tariffs on electric vehicles imported from China.
Stellantis isn’t the only company exploring potential partnerships with Chinese automakers. us car manufacturer ford It is reportedly negotiating a European partnership with China’s Geely Automobile and a partnership with Germany’s Geely Automobile. volkswagen has said it is willing to share underutilized European factories with Chinese car brands as part of cost-cutting measures.
Stellantis CEO Antonio Filosa said at the FT Future of the Car Summit on Tuesday that such a partnership concept should not be exclusive to China. His comments came in response to a question about whether Western automakers partnering with Chinese car brands could serve as a strategy for the industry.
“Obviously, the Chinese original equipment manufacturers are strong players coming into Europe with a lot of force…but we may also look at other manufacturers,” Filosa said at the London summit.
“Leapmotor is our partner in China and we really appreciate that partnership. That’s why we’ve taken it to the next level, and there’s so much more we can do.”
CNBC has reached out to Ford and Volkswagen and is awaiting a response.
The trend is burgeoning as Western auto giants grapple with the crisis on multiple fronts.
Top original equipment manufacturers (OEMs) are caught in a perfect storm, facing headwinds such as rising production costs, U.S. tariffs, intense competition, supply chain disruptions, regulatory pressures, and even a difficult transition to electric vehicles.
Stellantis became one of the first Western automakers to sign a partnership agreement with a Chinese manufacturer when it acquired a roughly 21% stake in Leap Motor in 2023.
Leapmotor CEO Zhu Jiangming on Friday described the company’s technological know-how and Stellantis’ global reach, regional roots and brand recognition as a “uniquely powerful partnership.”
“Point of no return”
Auto analysts say that while alliances between European and Chinese car brands could benefit both parties in the short term, traditional car giants need to be wary of some of the long-term risks.
Julia Poliscanova, senior director of vehicle and e-mobility supply chain at campaign group Transport and Environment, said that for Western car manufacturers, especially those lagging behind in electrification and software, these partnerships are seen as virtually the only option to “remain competitive in Europe”.
Employees work at the Leap Energy factory owned by Chinese automaker Leap Motor in Huzhou, Zhejiang Province, China, on April 26, 2026.
Adek Berry | AFP | Getty Images
“In the short term, European automakers need to optimize their factories, and Chinese automakers want to enter the market, and rightly so. But we are concerned about what that actually means in the long term,” Poliskanova told CNBC.
“I think if a Chinese brand helps build brand awareness and people get the car and see that it’s not such a bad car, that could be the point of no return,” Poliskanova said.
“So while there are real risks and it’s a good short-term strategy, I think it’s very important for European automakers who want to remain in business well into 2030 to continue developing electric models in parallel.”
