China and Europe are in the middle of a trade war motivated by the new tariffs on Chinese electric cars that Brussels launched on October 31. Just a few days later, the first retaliations from China could be coming.
Beijing could have ordered Chinese companies to stop their investments in Europe, especially in countries that voted in favor of tariffs, such as Poland, where Stellantis has been manufacturing Chinese cars for a few months. Leap motor.
China wants to teach countries that voted in favor of tariffs a lesson
After denying Chinese electric cars so many times, the CEO of Stellantis, Carlos Tavaresdecided to make a Solomonic decision: sign an agreement with a Chinese brand to produce its electric cars in Europe and sell them in our market.
You know what they say: if you can’t beat the enemy, join them. With this agreement, Leapmotor entered the European market through the front door without having to assume the tariffs that Brussels has imposed on the Chinese electric car, while Stellar It began to market cheap electric cars in Europe with which to confront, face to face, the Chinese brands that are putting Western manufacturers on the ropes.
In this joint venture between Stellantis and Leapmotor, Stellantis has a 51% stake. The agreement gives exclusive rights to the giant led by Carlos Tavares to export and sell Leapmotor’s electric models outside of Chinawith Europe as the epicenter.
Once the alliance was signed, Leapmotor production in Europe started a few months ago in the Stellantis plant in Tychy, Polandwhere the Alfa Romeo Junior is also manufactured. The first Leapmotor car to leave this plant was the Leapmotor T03, a small zero-emission urban car that, with a starting price of 18,900 euros, only costs 1,000 euros more than the Dacia Spring, despite the fact that the latter is manufactured in China.
Stellantis was also scheduled to imminently manufacture an SUV in Europe, specifically the Leapotor C10. In principle, the plans should go ahead, in fact, Leapmotor has not made any official communication that says otherwise, as the brand’s representatives in Spain have confirmed to us, but a Polish media says that Stellantis’ plans with this Chinese brand have been truncated. Or at least they have changed.
Money.pl claims that Leapmotor has suspended investments in Poland because the European Union is finally applying these tariffs to Chinese electric cars since last October 31. Before this measure was approved, several countries voted in favor and among them is Poland.
According to the same Polish media, in response to Brussels’ decision, China would have ordered its brands to stop investments in Europe. Money.pl clarifies that it is information confirmed “by correspondence between a representative of one of the Chinese companies and the Polish Trade and Investment Agency” to which this media has had access.
“We confirm that we have received information from Leapmotor about the suspension of its investments in our country. The investor explains that this information is due to the decision of the Chinese Ministry of Economy.”
What this information does not clarify is whether it is a temporary suspension of production or a total suspension that would ruin Stellantis’ plans to manufacture and sell Chinese cars in Europe. As we have said, at the moment, Stellantis has not made any official communication in this regard and the only thing it has confirmed to Motorpasión is that, today, the plans have not changed.
Really, it is not something that catches anyone by surprise because a few days ago we learned that China had already threatened with this type of measures in retaliation for the implementation of tariffs by Brussels. It is part of a trade war that has only just begun and from which Spain, which abstained in the vote on tariffs, could benefit.
Beyond the Stellantis situation, if Beijing has asked its companies to stop investments in Europe, as published Reutersnot only Leapmotor’s production in Poland is in danger, but also other investments, such as the creation of factories by Chinese companies in Europe, both for cars and batteries. For now, Chery has delayed its production plans at the Barcelona plant by one year.
Source: www.motorpasion.com
