Leapmotor Facilitates FAW Hongqi-Stellantis Talks for Local NEV Assembly in Spain, Targeting 15+ Models in Europe by 2028

FAW Hongqi is negotiating with Stellantis, with Leapmotor acting as intermediary, to manufacture vehicles at the automaker's Zaragoza facility in Spain. This local production strategy would expedite the introduction of over 15 new energy vehicle (NEV) models to European customers by 2028.

Reuters reported the discussions on Tuesday, citing five people familiar with the matter. Leapmotor is facilitating the connection between FAW Hongqi and Stellantis, following Stellantis's acquisition of about a 20% stake in Leapmotor through a €1.5 billion investment in October 2023, and FAW's subsequent 5% stake in December.

Producing locally at the Zaragoza facility would enable Hongqi to bypass hundreds of millions of dollars in costs associated with building new factories. These savings could allow for more affordable pricing to attract European buyers. Stellantis stands to benefit from reduced operating expenses and increased use of its underutilized Spanish plant.

Should the deal materialize, European consumers interested in Hongqi vehicles can anticipate quicker access to an expanded lineup of NEV models, bolstering the brand's presence in the region.