Stellantis proposes to open the doors of the Fiat factory in Turin to the Chinese Leapmotor

The partnership between Stellantis and the Chinese manufacturer Leapmotor is progressing at high speed. Stellantis could open the doors of the historic Fiat factory in Mirafiori, a district of Turin, to its new Chinese partner as early as 2026 so that it can assemble its electric cars in Europe. According to Automotive News Europe, Stellantis plans to assemble up to 150,000 Leapmotor vehicles per year in this historic factory. Stellantis signed a joint venture agreement with Leapmotor last October. The Italian-French-American manufacturer had announced an investment of 1.5 billion euros in Leapmotor, taking a 21.3% stake in this start-up specializing in electric vehicles, with the aim of supporting its offensive to the international.

The agreement included the creation of a joint venture dedicated to exports, called Leapmotor International, of which Stellantis will be the majority, with 51% of the shares, and which will hold "the exclusive rights to manufacture, export and sell Leapmotor products outside China”. The American-French-Italian group has the “leading role” in this new entity which will attack Europe from the second half of 2024. Stellantis today recognizes that this project is indeed being considered. The group notes that other Chinese groups, BYD, Chery, etc. are seeking to establish their production in Europe to sell their vehicles there. BYD has indeed chosen to build a factory in Hungary. Leapmotor continues this same logic. The Mirafiori site would indeed be one of the European sites studied by the Chinese start-up, confirms a source close to the manufacturer.

Also read: Stellantis converts Fiat flagship factory to circular economy

The historic site of Mirafiori, headquarters of the Fiat brand, is a bit like Renault's Flins factory, a former gigantic site that is now under-exploited and in the process of being reconverted to the circular economy. The Stellantis group still maintains an assembly activity (Fiat 500, Maserati) and production there. It will also dismantle end-of-life vehicles, recondition cars and carry out retrofits (the transformation of a thermal vehicle into an electric one).

During Stellantis' results presentation last week, Carlos Tavares indicated that the group could manufacture Leapmotor cars in Italy "if it proved profitable." “It just depends on how competitive we are in terms of cost and quality. So we have the opportunity to seize this opportunity at some point,” he said. Production of Leapmotor cars at Mirafiori could help Stellantis meet a target agreed with the Italian government to increase the group's production in the country to one million vehicles by the end of the decade, from 750,000 a year last.