Chinese car brand to make affordable electric vehicle in Italy

Stellantis plans to make a compact electric vehicle in Italy with China’s Leapmotor, according to people familiar with the matter, as the Fiat owner seeks ways to cut costs and access more competitive technology.

Dubbed the E-Car, the model will be produced starting in 2028 at a plant in Pomigliano, Italy, Stellantis said Tuesday, adding that it’ll be powered by battery technology to be developed with “selected partners.”

Leapmotor is the main partner, the people said, asking not to be named as the plans aren’t public.

Representatives for Stellantis and Leapmotor declined to comment on the project’s partners.

The maker of Opel and Peugeot cars recently announced a partnership with Leapmotor in Spain to develop an electric SUV for the European market.

The agreement also involves the Chinese manufacturer making its cars at Stellantis plants in the country.

More deals are coming for other underutilized Stellantis factories in Europe, France’s Force Ouvrière labor union said this month.

Automakers on the continent are in the midst of a strategic overhaul that increasingly involves partnering with Chinese competitors.

That’s in response to some of the same rivals expanding in Europe with affordable EVs and plug-in hybrids.

BYD is leading the push, underscored by its attempt to join the region’s car lobby group.

Stellantis Chairman John Elkann has been under pressure from Italian Prime Minister Giorgia Meloni’s government to ramp up production at underused plants in the country.

Other European carmakers are also dealing with high costs and intense competition, and are open to similar Chinese deals. Leapmotor already works with Stellantis on sales and distribution in Europe.

Its models, including the Leapmotor T03 city car, are competing with entry-level EVs from Renault and Volkswagen.

“Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly,” Stellantis Chief Executive Officer Antonio Filosa said in Tuesday’s announcement.