China's Leapmotor Teams Up With Stellantis For Electric Car Production In Poland: Report
Portfolio Pulse from Shivani Kumaresan
China's Leapmotor has partnered with Stellantis N.V. (NYSE:STLA) to produce small electric vehicles in Poland, utilizing the semi-knocked down technique. This strategic move aims to expand into the European market and is supported by Stellantis' acquisition of a 21% stake in Leapmotor. The production will begin in the second quarter of this year at Stellantis' facility in Tychy. Additionally, Stellantis has exclusive rights to manufacture, export, and distribute Leapmotor products outside China, following regulatory approval for their joint venture.
March 22, 2024 | 4:03 pm
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Stellantis partners with Leapmotor to produce electric vehicles in Poland, aiming to expand into the European market. The partnership includes Stellantis' acquisition of a 21% stake in Leapmotor and exclusive rights outside China.
The partnership with Leapmotor represents a strategic move for Stellantis to expand its footprint in the electric vehicle market, particularly in Europe. The acquisition of a 21% stake in Leapmotor and the exclusive rights to manufacture, export, and distribute Leapmotor products outside China could significantly enhance Stellantis' market position and product offerings. This collaboration is likely to be viewed positively by investors, potentially leading to a short-term positive impact on STLA's stock price, despite the slight decrease on the last trading day mentioned.
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