Global carmaker Stellantis will sell electric cars produced by its Chinese partner Leapmotor to Europe, including in the UK. It is criticizing Joe Biden for his decision to impose 100% tariffs on Chinese EVs that are imported into the US.
Stellantis, a company that owns Fiat, Peugeot, and Vauxhall brands, will begin selling Leapmotors in September at prices below €20,000 (£17.200). UK sales are expected to begin in March 2025.
Carlos Tavares is the Stellantis CEO. He said that the move will allow the company to profit from the wave Chinese cars coming into Europe and strongly condemned protectionism, as the US launched high tariffs to shield their own industry.
Biden announced on Tuesday a 100 percent tariff on electric vehicles made in China as the US industry lags behind China and Europe. Tavares, however, said that tariffs will increase inflation in the US. This is a major political concern ahead of the November presidential election.
China is the largest electric car market in the world. Dozens Chinese car manufacturers, including BYD which competes with Tesla for the title of world’s largest electric vehicle manufacturer, have begun selling cars in Europe.
European and US automakers are racing to catch up with China’s host of electric vehicle makers. These companies often enjoy direct government assistance, lower labour costs, and China’s dominance in global battery supply chains.
Tavares described the deal with Leapmotor as a “pragmatic” and “opportunistic”, move to benefit from the rise in Chinese manufacturers.
He said, “Whether I want it or not, they’re grabbing share.” “What I can to is leverage this dynamic.”
The T03, which is a five-door small city car and the larger C10 SUV will be the first models sold in Europe.
Tavares is also opposed to Biden’s efforts to protect US manufacturers. Tavares claimed that trade barriers were creating three “automotive bubbles” in the US and Europe, as well as China.
He said that tariffs would “just end up with inflation in the bubble”. “Protectionism is not without its drawbacks. They don’t show up immediately, but one by one.
Tavares admitted that the situation of Chinese-made cars in Europe could also change if the EU decided to impose additional tariffs. The EU examines dumping of Chinese electric cars in Europe. This could result in tariffs or other barriers as a response.
Stellantis will own 51% of the Amsterdam-headquartered Leapmotor International, while the Hangzhou-headquartered Leapmotor will own 49%. Leapmotor, founded by electrical engineer Zhu Jiangming in 2015, is a company that has grown rapidly. Stellantis invested in Leapmotor earlier in an October deal.
Starting in the fourth quarter 2024, Leapmotor will be sold to India, the Asia Pacific region and Africa as well as South America.
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