Stellantis and its Chinese partner Leapmotor have abandoned plans to produce a second model electric car (EV) at the European carmaker’s factory in Poland, Reuters reports.
The decision comes amid considerations over alternative production sites in Germany and Slovakia following advice from the Chinese government to halt significant investments in certain European countries.
The joint venture is now evaluating Stellantis’ Eisenach plant in Germany and the Trnava plant in Slovakia as potential production sites for the B10 electric crossover.
Leapmotor has announced the B10 as the first in a series of electric vehicles designed for international markets, including Europe.
Carlos Tavares, CEO of Stellantis, emphasized the partnership’s goal to deliver “high-tech, affordable” electric vehicles to consumers outside China.
Stellantis has a majority stake of 51% in the joint venture, while Leapmotor owns the remaining 49% stake.
This shift was influenced by private communications from the Chinese government urging automakers to suspend major investments in European countries that supported additional tariffs on Chinese-made electric vehicles.
Poland is one of ten EU member states that supported the EU’s decision to impose tariffs of up to 45% on imported Chinese-made electric vehicles.
In contrast, five members, including Germany and Slovakia, opposed the tariffs, and 12 others abstained. These rates came into effect on October 30.
The production location for the B10 SUV remains unknown, and it is uncertain whether factors other than Beijing’s influence influenced the decision to move production out of Poland.
Stellantis’ Tychy factory in Poland assembled the T03 compact EV using components imported from China.
It remains unclear whether the T03 assembly is part of the review and how it could affect employment.
According to a source, production of the new EV joint venture in Germany, a potential option, would be more expensive than in Poland due to higher utility and labor costs.
“Stellantis, Leapmotor scrap plans for second EV model in Poland” was originally created and published by Just Auto, a brand owned by GlobalData.
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