Stellantis Plugs China Hole With $1.1 Billion Leapmotor Deal
- Move comes after Jeep owner ended car making in China
- Global giants have fallen behind Chinese upstarts in EV race
A Leapmotor T03 electric vehicle at the Zhejiang Leapmotor Technologies pavilion at the Munich Motor Show in September.
Photographer: Krisztian Bocsi/BloombergStellantis NV has struck a $1.1 billion deal for a stake in Chinese electric vehicle maker Zhejiang Leapmotor Technologies Ltd. just days after ending manufacturing in the country, as legacy global automakers race to catch up with a new breed of rivals leading the transition to battery-powered cars.
The maker of Chrysler, Fiat, Jeep and Peugeot cars will buy about 194 million Leapmotor shares at HK$43.80 apiece — a 19% premium to Wednesday’s closing price — according to an exchange filing on Thursday, confirming an earlier Bloomberg News report. Stellantis will end up with a 21.2% interest in Leapmotor and two board seats after the deal. The companies will also set up a joint venture in which Stellantis will make and sell some Leapmotor cars outside China.