Stellantis, a global automaker, has found a lifeline in a partnership with Chinese upstart Leapmotor. The company's sales were plummeting, factories were underused, and profit was evaporating when Antonio Filosa took the reins a year ago. However, the partnership with Leapmotor has been a rousing success, with Leapmotor outselling Chinese giant BYD in large European countries like Germany.
Stellantis has become the largest shareholder of Leapmotor and launched a joint venture to sell the upstart's cars worldwide. The alliance has helped Filosa boost the company during a period of disarray. Last week, Stellantis announced a plan to take the Leapmotor deal to the next level, with the Chinese company's cars helping to keep Stellantis's underused European factories humming for years.
The deal reflects a new way of thinking for the automotive industry, with some automakers choosing to join with Chinese upstarts instead of trying to beat them. Leapmotor has developed into one of the fastest-growing Chinese car brands, selling nearly 600,000 vehicles in 2025 and making its first annual profit.
Stellantis is doubling down on this strategy, announcing plans to form a similarly structured joint venture with state-owned Chinese automaker Dongfeng. The deal would entail building Dongfeng's models at a Stellantis factory in France. Leapmotor and Dongfeng gain several advantages, including bypassing tariffs in the European Union.
However, the deal could still result in creating more competition for Stellantis in a tightening global car market. Filosa said Stellantis aims to sell only Leapmotor models that complement those available from Stellantis brands like Peugeot and Fiat.
