According to a report from Bloomberg News on Wednesday, Stellantis (NYSE:STLA), the parent company of Dodge, Fiat and several global brands is actively considering potential collaboration opportunities with Zhejiang Leapmotor Technology Co Ltd (HK:9863), a Chinese electric vehicle (EV) manufacturer.
A strategic move is aimed at growing Stellantis' footprint in the Chinese automotive market.
Sources familiar with the matter have indicated that Stellantis is currently evaluating various options, including potential investments in a local EV enterprise, and forming strategic business partnerships.
The report also noted that various international automakers, Volkswagen (ETR:VOWG_p) among them, have displayed interest in the possibility of forming a partnership with Leapmotor.
Back in July, CEO Carlos Tavares remarked that Beijing's decision to limit the export of two crucial metals used extensively in semiconductor and electric vehicle manufacturing should not prompt companies from Western countries to lessen their involvement with China.
For Stellantis, headquartered in Amsterdam, a substantial presence in China would mark a significant milestone. Tavares previously terminated a collaborative endeavor with the Chinese supplier GAC for the production of Jeep vehicles last year due to his dissatisfaction with the pace of the project's development.
Otherwise, the Chinese market plays a relatively small role in the automaker’s global market share. Factoring in joint ventures that aren't fully consolidated, Stellantis managed to distribute approximately 90,000 vehicles across the Asia-Pacific region, which comprises China and India, during the first half of the year. By way of comparison, its counterpart, Volkswagen, accomplished the delivery of 1.45 million vehicles exclusively in China during the same timeframe.
Shares of STLA are down 0.30% in early trading Wednesday morning.