learnedutoday
Stellantis, a global carmaker, is set to introduce affordable electric vehicles in Europe. Including the UK, through its collaboration with Chinese partner Leapmotor. This decision comes as a response to US President Joe Biden’s imposition of a 100% tariff on Chinese electric vehicles entering the US market.
The initiative, scheduled for September, will feature two Leapmotor models priced below €20,000 (£17,200), with UK sales slated to commence in March 2025. Carlos Tavares, Stellantis’ CEO, views this move as an opportunity to capitalize on the influx of Chinese electric cars into Europe while condemning protectionist measures such as tariffs.
Biden’s tariff announcement aims to shield the US automotive industry, which trails behind China and Europe in electric vehicle production. Tavares argues that such tariffs could exacerbate inflation in the US, a pressing concern ahead of the upcoming presidential election.
China’s dominance in electric vehicle manufacturing, supported by government incentives and supply chain advantages. It has spurred European and US carmakers to vie for market share. Stellantis sees its partnership with Leapmotor as a strategic move to leverage the rise of Chinese manufacturers, despite potential trade barriers.
While Stellantis owns renowned US brands like Chrysler and Jeep. Tavares opposes protectionist policies, which he believes create economic bubbles and fuel inflation. He acknowledges the possibility of the EU implementing tariffs on Chinese electric vehicles. If they’re deemed to be dumped in European markets.
The collaboration entails Stellantis owning 51% of Leapmotor International, while Leapmotor retains a 49% stake. This partnership not only facilitates Leapmotor’s expansion into other regions like India, the Asia Pacific, Middle East and Africa, and South America. But also underscores the shifting dynamics of the global automotive industry towards electric mobility.
Haseeb Abdullah
