If finalized, this would mark the first case of a major Western automaker relying on Chinese vehicle architecture and software to develop new cars for the European market. According to bloomberg reports, Stellantis is considering expanding its technical cooperation with Chinese partner Leapmotor to introduce the latter’s electric vehicle platforms, batteries, and electric drive technologies. The goal is to reduce research and development costs and enhance the competitiveness of its European mass-market brands, including Fiat, Opel, and Peugeot. Sources familiar with the matter revealed that Stellantis is evaluating an expansion of the cooperation scope within its joint venture with Leapmotor to acquire Leapmotor’s more advanced battery and electrified powertrain technologies. If an agreement is reached, it would mark the first instance of a major Western automaker relying on Chinese vehicle architecture and software to develop new cars for the European market. Leapmotor attended the Stellantis 2026 CONNECT Global Partner Conference. This move comes as Stellantis faces significant financial and competitive pressures. Earlier this month, the company announced recorded asset impairments and related charges totaling €22.2 billion (approximately $26.1 billion) in an effort to stem declines in market share and profits. Stellantis CEO Antonio Filosa candidly stated, “Our performance reflects excessive optimism about the pace of the energy transition and the necessity of restructuring our business around customer choice freedom.” At the same time, European automakers are facing intense competition from Chinese brands such as BYD and MG, as well as pressure from local rivals like Volkswagen and Renault. Against this backdrop, leveraging Leapmotor’s mature technologies to reduce R&D costs has become an important option for Stellantis to address these challenges. In October 2023, Stellantis and Leapmotor signed a strategic cooperation agreement. The partnership between Stellantis and Leapmotor began in 2023, when Stellantis invested approximately €1.5 billion in Leapmotor, acquiring about a 20% stake. In May 2024, Leapmotor International officially commenced operations; in September of the same year, models such as the Leapmotor C10 and T03 entered nine European markets through Stellantis’ European distribution network. Additionally, Stellantis has been utilizing its Polish factory for localized production testing of Leapmotor models in response to EU tariff policies. Sources familiar with the matter state that the relevant negotiations are still in the early stages, with both parties aiming to reach an agreement within the year.