Stellantis Pursues Deep Partnerships with Chinese Automakers—Xiaomi, XPeng, Leapmotor, and Dongfeng in Talks

Global automaker Stellantis, mired in massive losses, is accelerating partnerships with Chinese companies to reverse its fortunes. The company reported a net loss of €22.3 billion in 2024, primarily due to strategic missteps and miscalculations in its electrification strategy. To comply with Europe’s stringent carbon emissions regulations and gain access to electric vehicle (EV) technology, Stellantis has been exploring the possibility of investments from Chinese firms Xiaomi and XPeng in its premium brands Maserati and Opel, and is also considering leveraging their European production capacity. Meanwhile, its joint venture with Leapmotor has already begun selling vehicles in Europe, with Leapmotor’s all-electric models significantly helping Stellantis offset potential carbon-emission penalties. Additionally, Stellantis’ new CEO, Jean-Dominique Senard, is actively working to repair ties with Dongfeng Motor, pledging to introduce new products to the Dongfeng Peugeot-Citroën Automobile (DPCA) joint venture and advance the “China for Global” strategy. Although short-term sales have shown some recovery, the company’s long-term competitiveness remains to be proven.