Stellantis wants to build Chinese EVs in Canada and Mexico. Just not in the US.

Stellantis CEO Antonio Filosa said Stellantis sees opportunity to produce and sell Chinese-branded Leapmotor vehicles in Mexico and potentially Canada. He said there is no space for such vehicles in the United States at present. The remarks acknowledge Stellantis’ plan to use its own plants to build vehicles designed by Leapmotor, a Chinese automaker in which Stellantis holds a 21% stake. Stellantis also owns 51% of a joint venture that grants exclusive rights to sell and manufacture Leapmotor products outside greater China. The Brampton, Ontario assembly plant is a likely production site, and Canadian trade rules could allow imports with a limited tariff, while local production could further reduce tariff impact. Filosa framed the partnership as a way to grow sales, learn engineering and software capabilities, and share capital costs.

"“Now there is no space in the United States. We don't see that,” Filosa said at a news conference following the company's investor day near Detroit."

"Stellantis, the parent of Jeep, Ram, Dodge, and Chrysler, is openly discussing using its own plants to produce vehicles designed by a Chinese competitor. The partner is Zhejiang Leapmotor Technology, in which Stellantis holds a 21% stake. Stellantis also owns 51% of a joint venture with Leapmotor. The JV gives Stellantis exclusive rights to sell and manufacture Leapmotor products outside greater China. That structure makes Stellantis both a legacy Detroit automaker and a licensed distributor of Chinese EVs."

"The most obvious candidate for production is Stellantis' assembly plant in Brampton, Ontario. The facility, a suburb of Toronto, has not produced a vehicle since the Dodge Charger and Challenger ended production in December 2023. Bloomberg reported in April that Stellantis was in discussions with Leapmotor about building EVs at the idled plant. Canada's trade deal with China allows 49,000 Chinese-made EVs to be imported annually at a 6.1% tariff. Building Leapmotor vehicles in Brampton would circumvent even that modest tariff. The cars would be Canadian-manufactured."

"Filosa framed the partnership as a way for Stellantis to grow sales, learn from its Chinese counterpart, and share capital expenses. The learning dimension is as significant as the commercial one. Leapmotor's engineering speed, cost structure, and software-defined vehicle architecture represent capabilities Stellantis has struggled to deve"

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