Stellantis Teams With Chinese Leapmotor for Budget EV Production in Italy

Key Details Stellantis will produce an affordable compact electric vehicle called the E-Car starting in 2028 at its Pomigliano plant in Italy, partnering with China's Leapmotor on battery technology. The collaboration marks another strategic move by the Fiat owner to reduce costs and compete with Chinese EV manufacturers expanding aggressively across Europe. Leapmotor is the main technology partner, though Stellantis and the Chinese firm have declined official comment. Why It Matters European automakers face mounting pressure to cut production costs while competing against affordable Chinese EVs flooding the market. Stellantis CEO Antonio Filosa emphasized customer demand for stylish, affordable European-made vehicles with zero emissions. This deal follows a similar partnership in Spain where Leapmotor will manufacture electric SUVs at Stellantis facilities. Broader Industry Shift Stellanis Chairman John Elkann has faced pressure from Italy's government to boost output at underutilized plants. Multiple European carmakers are now pursuing Chinese partnerships to access competitive technology and lower costs. The move reflects an industry-wide overhaul as companies like BYD lead China's expansion into European markets with competitively priced EVs and plug-in hybrids.