Leapmotor plans to move production of its vehicles for the European market to Germany

Javier Cantagalli     12 November 2024     2 min.
Leapmotor plans to move production of its vehicles for the European market to Germany

Stellantis has held a 20 percent stake in Leapmotor since last year, with the aim of expanding its presence in the Chinese market while also facilitating the entry of Leapmotor’s electric vehicles into Europe.

As we have already mentioned in an earlier post here at HighMotor, the Chinese manufacturer Leapmotor, in collaboration with Stellantis, began production of the T03 electric model at the Polish plant in Tychy just before the summer. However, the latest reports now indicate that this model could be the last electric Leapmotor built in Poland, as the company plans to move production of its next vehicle with this powertrain, the B10, to Germany.

Everything points to the Leapmotor B10, presented last October, being finally assembled at Stellantis’ German plant in Eisenach, which until now has mainly been dedicated to producing Opel models.

Leapmotor C10 Europa 2024

The reason behind this decision appears to be based mainly on geopolitical pressures rather than the company’s business strategy. According to these reports, the Chinese government has asked car companies from its country to avoid making significant investments in European countries that supported the special tariffs on electric vehicles produced in China, which came into force at the end of October. Germany opposed the application of these special tariffs, while Poland voted in favour, which makes the German country a more favourable option in the eyes of the Chinese government for starting B10 production there.

Will the same happen with the rest of Leapmotor’s electric models intended for the European market?

Although the T03 is currently produced with components made in China at the Polish plant in Tychy, it is not yet clear whether its production will also be moved to Germany or another European country, since neither Leapmotor nor China’s Ministry of Commerce have commented on the matter. On the other hand, Leapmotor’s C10 model, which is also sold in Europe, is for now still manufactured in China, although plans already exist to move its production to Europe. However, it has not yet been determined which European plant will be used.

Leapmotor T03 Road

Finally, it is important to point out that moving B10 production to Germany could increase the labour costs needed to manufacture it, which as a consequence could end up affecting the vehicle’s final price and its competitiveness in the market. Leapmotor’s goal in Europe is to offer the most advanced technology at affordable prices, a target that would become somewhat harder to reach as a result of this decision.

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