Stellantis, the world’s fourth-largest automaker, is embracing the low-cost strategy of Chinese electric vehicle (EV) makers to stay competitive.
CEO Carlos Tavares believes tariffs protecting local automakers in Europe and the US are a “trap,” shielding them from the reality that Chinese rivals produce EVs much cheaper.
To compete, Stellantis acquired a 21% stake in Chinese EV maker Leapmotor.
The joint venture allows Stellantis to access Leapmotor technology and produce its EVs outside of China. Stellantis has already started manufacturing Leapmotor EVs in Poland and may expand to North America.
However, automakers face challenges due to trade policies in the US, where Chinese-made EVs face a 100% tariff. Despite these barriers, Stellantis remains committed to its EV targets and is launching cheaper models like the Citroen e-C3 to stay competitive in the global market.
Tavares argues that automakers should innovate instead of relying on protectionism to match the efficiency of Chinese EV makers.
The ongoing struggle highlights the complex global landscape of the EV industry, as automakers must balance competition and cooperation with Chinese companies.
