(JW Insights) Aug 24 -- Stellantis NV, the second largest car manufacturer in Europe, is considering partnering with Chinese electric vehicle company Leapmotor (零跑) to enhance its influence in China, the world’s largest automotive market, Pandaily reported on August 24.

Insiders stated that Stellantis is taking a series of measures to catch up with its competitors, such as “investing in a local automotive company” and establishing business partnerships that will contribute to its development in China. They also added that this decision is still in the ‘consideration’ stage and a final decision has not been made yet.

Stellantis Group CEO Carlos Tavares has stated in an interview that ‘some of our Western counterparts, Volkswagen and General Motors, are currently facing pressure in the Chinese market.’ This is because their traditional fuel vehicle business is shrinking, and their scale of electrification business is not large, resulting in relatively low profits.

He also stated that as Tesla’s profits gradually decline, it will enter an environment of tight pricing and strong cost competitiveness. In such an environment, ‘large-scale enterprises like ours may face operational issues.’

And in early August this year, it was learned from informed sources that after Xpeng Motors, the Volkswagen-owned Jetta brand is in talks with Leapmotor for cooperation, said the Pandaily report.

(Yuan XY/Gao J)