Stellantis and Leapmotor Scrap Plans For Second Model In Poland

In a significant shift, Stellantis and its Chinese partner, Leapmotor, have decided to halt their plan to manufacture a second electric vehicle (EV) model at Stellantis’ plant in Tychy, Poland, according to sources familiar with the matter. Instead, they are now exploring Stellantis’ Opel plant in Eisenach, Germany, and the Trnava facility in Slovakia as alternative sites for production of the B10 electric crossover.

The decision reportedly comes after the Chinese government advised its automakers to pause substantial investments in European countries that supported the European Union’s recent proposal to impose tariffs of up to 45% on imported Chinese EVs. This tariff, which came into effect on October 30, is part of the EU’s initiative to address concerns about competition from lower-priced Chinese EVs.

Background on the B10 EV and EU Tariffs –

The B10, revealed at the Paris Motor Show on October 14, was celebrated as a milestone for Stellantis and Leapmotor’s partnership, aimed at bringing “high-tech, affordable” EVs to markets outside China. The B10 is the first model in Leapmotor’s B series, planned for international markets, with Europe identified as a primary target.

In response to the EU’s decision to support new tariffs on Chinese imports, China’s Ministry of Commerce held a private meeting with automakers on October 10, urging them to reassess their investment strategies in supportive EU nations. Poland, one of 10 EU countries backing the tariff plan, may now see its role in Leapmotor’s and Stellantis’ European EV plans scaled back.

Considering New Production Locations –

If production moves to Germany, Stellantis and Leapmotor will likely encounter increased utility and labor costs, but this shift might offer a stronger foothold in Western European markets. “While relocating manufacturing comes with cost challenges, it may strengthen our competitive presence within the EU,” commented a source familiar with the potential transition.

Slovakia’s Trnava plant presents another option, with potentially lower operational costs than Germany, making it an attractive alternative. A representative close to the discussion stated, “Trnava could provide a cost-effective solution, allowing Stellantis to maintain its affordability promise for the B10.”

Despite the change in plans, Stellantis continues its commitment to affordable EVs for the European market. CEO Carlos Tavares has expressed optimism about the collaboration with Leapmotor and the B10’s potential impact. “Through this partnership, we’re striving to bring high-tech, affordable electric options to drivers outside of China, and this is just the beginning,” Tavares previously said regarding the B10’s potential.

Source: Reuters