A Chinese regulator has given its approval for Leapmotor's joint venture with Stellantis, with the deal still awaiting regulatory approval in other markets, according to Reuters.
(Leapmotor said Leapmotor International has established an executive team. Image credit: Leapmotor)
A proposed joint venture between Chinese new energy vehicle (NEV) maker Leapmotor (HKG: 9863) and Stellantis NV, Europe's second-biggest car maker by sales, has been approved by a Chinese regulator, Reuters said in a March 6 report, citing two people familiar with the matter.
China's National Development and Reform Commission (NDRC) has approved the joint venture, one of the sources said, adding that the deal was still awaiting regulatory approval in other markets.
Leapmotor announced on October 26 last year that Stellantis would invest 1.5 billion euros ($1.6 billion) in it for a roughly 20 percent stake, making it the NEV maker's largest outside shareholder.
The two companies plan to form a joint venture called Leapmotor International to accelerate and expand global sales of Leapmotor's products by leveraging Stellantis' global resources, Leapmotor's announcement said at the time.
Stellantis will own 51 percent of the joint venture, with Leapmotor holding the other 49 percent.
The joint venture will have the exclusive right to conduct export and sales operations to all other markets in the world except Greater China, as well as the exclusive right to manufacture Leapmotor products locally.
Yesterday, Leapmotor said in a Weibo post that Leapmotor International has established its executive team, and shared several images of the team.
Leapmotor's first model for the international market is the C10, an SUV that made its world debut at the Munich auto show in September 2023 and officially launched in China on March 2.
Leapmotor will begin selling vehicles in overseas markets in the third quarter of this year, and the first product will be the C10, which is the company's flagship model for overseas markets, said Zhu Jiangming, the company's chairman, in a group interview with the media after the model's March 2 launch.
Leapmotor's internationalization process is moving very fast, with 10 executives from Leapmotor International coming to the C10 launch, Zhu said at the time.
A large part of the company's future product planning will be for overseas markets, Zhu said.
By utilizing its partnership with Stellantis, Leapmotor can quickly gain access to more high-quality channel resources, including market expansion, parts distribution systems, and service systems, he said.
(Images shared by Leapmotor on March 6, 2024 about Leapmotor International's executive team.)
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