Stellantis and Leapmotor Explore 50,000-Unit Spain EV Programme After €22.2 Billion Writedown

Stellantis is in advanced talks with Leapmotor to develop an Opel-branded electric SUV for production at its Zaragoza plant in Spain, according to Reuters. The proposed vehicle is expected to enter production in 2028, with a reported annual target of about 50,000 units. Reuters says the project would allow Stellantis to shorten development timelines and lower costs by using Leapmotor technology rather than building a new electric model entirely from scratch.

The talks matter because they show how established European automakers are trying to protect competitiveness as lower-cost Chinese EV technology becomes more influential in the region. Reuters reports that the new Opel model, internally referred to as O3U, would be linked to Leapmotor’s B10 compact SUV architecture, while Opel would handle the exterior design and Leapmotor would contribute key electronic and electrical components. Reuters also noted that Leapmotor publicly denied any full platform-level collaboration, while acknowledging discussions over supplying components to Stellantis.

 

Why the Partnership Matters Now

 

The timing is closely tied to Stellantis’ broader financial reset. Reuters reported in February that the company booked €22.2 billion in writedowns, equivalent to about $26.5 billion at the time, as it scaled back earlier EV assumptions. Later that month, Reuters also reported a second-half 2025 net loss of €20.1 billion linked to those charges. In that context, working with Leapmotor is not just a product decision. It is part of a wider effort to reduce capital intensity and accelerate electric vehicle programmes without repeating the cost structure that contributed to the earlier losses.

This also reflects a broader market shift in Europe. Chinese EV manufacturers and Chinese-developed vehicle platforms are putting pressure on legacy carmakers to move faster on affordability, time to market, and engineering efficiency. A partnership model allows Stellantis to keep a European production base in Spain while pulling in lower-cost development capabilities from China. That balance is becoming more important as European manufacturers try to defend share in a market where EV competition is increasingly shaped by price and speed, not just brand strength.

 

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Stellantis Is Building on an Existing Leapmotor Relationship

 

The discussions do not start from zero. Stellantis announced in October 2023 that it would invest about €1.5 billion to acquire roughly 21% of Leapmotor. The deal also led to the creation of Leapmotor International, a joint venture in which Stellantis holds 51%, with exclusive rights to export, sell, and manufacture Leapmotor products outside Greater China. That structure gave Stellantis both a strategic foothold in China’s EV ecosystem and a channel for using Leapmotor technology in overseas markets.

Because of that existing ownership and operating relationship, the proposed Spain project is best viewed as an expansion of an earlier strategic bet rather than a new one. Stellantis already has financial exposure to Leapmotor and already controls the international vehicle business outside Greater China through the joint venture. Using that relationship to support an Opel EV programme in Spain would show how the company intends to turn its Chinese partnership into a more direct manufacturing and product development advantage in Europe.

 

What It Means for Spain and European EV Manufacturing

 

If the project moves ahead, Zaragoza would become an even more important EV production base within Stellantis’ European network. Reuters says the plant already produces the Opel Corsa EV, and the company is also considering additional future electric projects there, including a subcompact model on a separate production line. That suggests Stellantis may be using Spain not only as a manufacturing site, but also as a platform for a more cost-disciplined European EV strategy.

For Spain, that would support its position in the European electric vehicle supply chain at a time when investment decisions are becoming more sensitive to cost and scale. For Stellantis, it would create a way to localise production in Europe while relying on a Chinese partner for parts of the technology stack. That kind of hybrid model may become more common as automakers try to reconcile industrial policy, regional manufacturing goals, and the commercial reality that China remains ahead on many EV cost and platform metrics. This last point is an inference based on the structure of the talks and Stellantis’ existing Leapmotor arrangement.

 

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A Sign of a More Pragmatic Electrification Strategy

 

Antonio Filosa has been Stellantis CEO since mid-2025, and the company’s recent statements show a sharper focus on profitability and customer demand after overestimating the pace of the energy transition. Against that backdrop, the possible Leapmotor collaboration points to a more pragmatic electrification approach. Rather than funding every EV architecture internally, Stellantis appears more willing to combine external technology with its own brands and European production footprint.

The proposed Opel SUV therefore matters beyond a single vehicle launch. It shows how one of Europe’s biggest automakers may respond to margin pressure, Chinese competition, and slower-than-expected EV economics. If completed, the Spain project could become a test case for whether cross-border EV partnerships can help European carmakers protect local manufacturing while cutting development time and capital risk.