Stellantis Plunges $24B into Red, Leapmotor's European Expansion in Jeopardy

Stellantis, the world’s fourth-largest automaker, recently announced an asset impairment charge of €22.2 billion (approximately RMB 180 billion), triggering a single-day stock plunge of 25%. This write-down is not due to declining sales but stems from a strategic realignment: €14.7 billion is allocated to revising its electrified product roadmap, €2.1 billion to adjusting its pure-electric vehicle supply chain, and €5.4 billion to workforce reductions and operational optimization—all aimed at lowering future depreciation costs and boosting profitability. This move will directly impact Stellantis’ Chinese partner, Leapmotor. In October 2023, Stellantis invested €1.5 billion to acquire a 20% stake in Leapmotor and jointly established "Leapmotor International" to spearhead Leapmotor’s expansion into Europe. Now, with Stellantis scaling back its electric vehicle investments, support for Leapmotor—including distribution channels, manufacturing facilities, and tariff-related assistance—could weaken significantly, casting major uncertainty over Leapmotor’s European market entry plans.