Hongqi Eyes Stellantis Spain Plant to Enter European Market

FAW Group's Hongqi brand is in talks with Stellantis to utilize the latter’s manufacturing plant in Zaragoza, Spain, for vehicle production. The facility is expected to begin contract manufacturing for Leapmotor later in 2024, and Hongqi models could also be assembled there. FAW, which holds a stake in Leapmotor, is engaging in these discussions with Stellantis—a fellow Leapmotor shareholder—as part of its strategy to support Hongqi’s plan to launch more than 15 new energy vehicle (NEV) models across 25 European markets by 2028, while avoiding the high capital expenditure associated with building its own factory. Hongqi has also set an ambitious target of achieving global annual sales of one million vehicles by 2030, with overseas markets accounting for at least 10% of that total. If successful, this deal would mark Hongqi’s first manufacturing footprint in Western Europe. Meanwhile, Stellantis is deepening its collaboration with Leapmotor, planning to jointly develop an Opel-branded electric SUV based on Leapmotor’s technology and produce it at the Zaragoza plant—highlighting Stellantis’s intention to position the facility as a localized production hub in Europe for its Chinese partners. Negotiations are ongoing, and no final agreement has been reached. Hongqi, FAW, and Leapmotor have all declined to comment, while Stellantis stated only that the company routinely engages in discussions with global industry players on various topics to optimize mobility solutions for its customers.