Stellantis, a multinational automaker, has formed a partnership with the Chinese automaker Leapmotor to increase the sales of Electric Vehicles (EVs) in international markets. The joint venture, known as Leapmotor International, aims to manufacture and distribute EVs in Europe, the Middle East, Africa, India, Asia Pacific, and South America.
Stellantis CEO Carlos Tavares stated that this collaboration will help address global warming by introducing cutting-edge EV models that can compete with other Chinese brands in key markets worldwide. The joint venture received approval from China’s regulatory body in March, indicating the country’s interest in expanding Leapmotor’s EV sales beyond China.
While Stellantis is making strides in the EV market, the company is also undergoing significant layoffs in the United States. The automaker is letting go of around 400 engineering and software employees in Michigan, with plans to hire lower-wage workers in countries like Brazil, India, Mexico, and Morocco. This shift allows Stellantis to reduce labor costs while expanding its global footprint.
In addition to the layoffs in the US, Stellantis recently laid off hundreds of auto workers at its Michigan plant and across other facilities in the country. Despite these workforce reductions, CEO Carlos Tavares received a hefty compensation package, solidifying his position as the highest-paid auto executive among Detroit’s Big Three.
Overall, the partnership between Stellantis and Leapmotor signifies a strategic move to boost EV sales globally, while the company’s restructuring efforts aim to optimize operations and drive growth in key international markets.
