Photo: Stellantis has stopped production of Chinese Leapmotor electric vehicles in Poland Author: Konstantin Shirokun
Stellantis has halted production of its Leapmotor compact electric vehicle in Tichy, Poland, likely in the wake of a tariff war between China and the EU.
This was reported by RBC-Ukraine with reference to Carscoops.
Wanting to avoid being left behind in the global shift to electrification, Stellantis invested $1.6 billion in Leapmotor in 2023, acquiring a 21% stake in the Chinese electric car maker. The deal gives Stellantis the right to sell Leapmotor vehicles across Europe. But despite early promises, the partnership has already hit its first major hurdle.
Stellantis' plant in Tichy, Poland, was producing the T03 small electric car for the European market, but local production of the model suddenly ceased on March 30. Stellantis has not said why, but unnamed sources say there are no plans to resume T03 production in Europe.
This is bad news for Stellantis, as it was only last November that the company abandoned plans to build a second Leapmotor EV at the same Polish plant. Meanwhile, Leapmotor vehicles shipped from China face a 21 percent tariff in the EU.
It is possible that a key reason is China’s reaction to EU trade policy. Back in October, the Chinese government told its carmakers to suspend major overseas investments in countries that supported new EU tariffs on Chinese-made electric cars. Poland was among ten countries that voted in favor of the tariffs. Another 12 EU members abstained, and five, including Germany, voted against.
Despite the production pause, Stellantis insists it is not abandoning its investment in Leapmotor. Through a joint venture with the Chinese company, Stellantis holds a controlling 51% stake, giving it exclusive rights to manufacture, sell and export Leapmotor electric vehicles outside of China.
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