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Leapmotor: Discussions on Cooperation with Various Businesses of Stellantis Group Are Ongoing

February 24, 2024
in Technology
Leapmotor: Discussions on Cooperation with Various Businesses of Stellantis Group Are Ongoing
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Recently, there have been reports that the global automotive giant Stellantis plans to produce Leapmotor cars in Italy. In response, on February 21st, Leapmotor stated that all business collaborations are under discussion and any latest news will be promptly shared with everyone. In November last year, Stellantis Group subscribed to 194 million new H shares of Leapmotor for HK$8.5 billion. In April last year, Leapmotor was embroiled in a controversy over falsifying sales data and long delivery cycles.

On October 26, 2023, Leapmotor announced that Stellantis Group plans to invest approximately 1.5 billion euros to acquire about 20% of Leapmotor’s shares. Stellantis Group and Leapmotor will establish a joint venture company named “Leap International” in a ratio of 51%:49%. On November 20 of the same year, Leapmotor issued an announcement stating that 194 million new H shares have been subscribed and issued to Stellantis Group, with total proceeds exceeding HK$8.5 billion.

Public information shows that Stellantis Group is an automobile manufacturer and mobility solutions provider, with brands including Maserati, Alfa Romeo, Chrysler, Citroën, Jeep, Peugeot and other automotive brands. In the 2023 Fortune Global 500 ranking, Stellantis Group ranks 31st.

Recently, Stellantis Group released its financial report for 2023. The group achieved a net revenue of 189.5 billion euros in 2023, representing a 6% increase compared to 2022; net profit increased by 11% to reach 18.6 billion euros.

Last year, Leapmotor was embroiled in a controversy over falsifying sales data. On April 17, 2023, Leapmotor responded to the matter by stating that the so-called subsidy fraud and sales data fabrication issues exposed by the dealer do not exist. In fact, the company did not ask dealers to list vehicles for sale; rather, many temporary license plates held by dealers’ customers needed to be converted to permanent plates before the subsidy deadline on December 31, 2022. This required dealers’ cooperation. The involved dealer is facing certain operational difficulties, and currently the company is in communication with them for negotiation.

SEE ALSO: Stellantis Considers Collaboration with Chinese Electric Car Companies, Including Leapmotor

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