"Vauxhall, one of Britain's oldest and best-loved motoring marques, is to fit Chinese-engineered components in its vehicles for the first time in its 122-year history, in a striking move designed to keep family motoring within reach of cash-strapped UK households. Parent group Stellantis confirmed at the weekend that electric motors, battery packs and powertrain technology supplied by Hangzhou-based Leapmotor will sit at the heart of the new Vauxhall C-SUV, a mid-sized family vehicle pencilled in for showrooms in 2028."
"It marks a significant shift for a brand that has built motor cars in Luton since 1905 and whose Ellesmere Port plant remains a totemic part of British manufacturing. The deal is the clearest signal yet that Europe's legacy carmakers have concluded they can no longer fight the Chinese on their own. Stellantis, which already owns a €1.5bn (£1.3bn) stake in Leapmotor acquired in 2023, will also throw open the doors of its Spanish plants to its partner, ending an arrangement under which Leapmotor manufactured exclusively on home soil."
"Antonio Filosa, chief executive of Stellantis, described the Chinese group as a "trusted peer" and pitched the tie-up as "a true win-win for both of us". He added that the agreement was "expected to support production and advance localisation in Europe of world-class manufacturing of electric vehicles at affordable prices to meet customers' real-world needs"."
"That nod to "real-world" buyers will not be lost on investors. Earlier this year Stellantis publicly conceded it had taken its eye off the average motorist during an ill-judged dash into electric vehicles, a misstep that prompted a €22bn writedown in February after sales fell well short of forecasts. The wider picture is bleak for European and American manufacturers. A wave of well-priced, well-equipped Chinese electric models has caught the West flat-footed, and more than one in four EVs now sold in the United Kingdom is bu"
Vauxhall will fit Chinese-engineered electric motors, battery packs, and powertrain technology for the first time in its 122-year history. Stellantis confirmed the components will be used in the new Vauxhall C-SUV, a mid-sized family vehicle planned for showrooms in 2028. The partnership reflects Stellantis’s existing €1.5bn stake in Leapmotor and a shift away from relying solely on European production. Stellantis will also allow Leapmotor to manufacture in its Spanish plants, ending Leapmotor’s exclusive home-soil production arrangement. Stellantis leadership described Leapmotor as a trusted peer and framed the deal as supporting European production, localisation, and affordable EVs for real customer needs. The move follows earlier concerns that Stellantis misjudged average buyers during its EV push, contributing to a major writedown after weak sales.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]