Zhejiang Leapmotor Technology (HKG:9863) and Stellantis are likely to decide on a new European production site for the Chinese electric vehicle maker in June or July, the South China Morning Post reported Monday.
Leapmotor is expected to transfer its European production to a factory of Stellantis in Spain, Germany, Italy, or Slovakia after the Dutch firm halted production of Leapmotor cars in Poland in March, the report said.
"This time, we will use components produced locally [in Europe]," Leapmotor co-president Michael Wu reportedly said in an interview.
Wu said the move is seen to raise production costs by about 10%, but Leapmotor will not increase prices, SCMP reported.
Stellantis earned exclusive rights to build, export, and sell Leapmotor products outside Greater China in May 2024 as part of a joint venture agreement between the two companies.
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