To be eligible for the ecological bonus for electric cars, you must produce in Europe. Several Chinese brands are making progress on the subject, but Leapmotor could well beat them all thanks to its partnership with Stellatis
MG and BYD have announced the construction of factories in Europe to produce some of their models for the European market. But it will still be many months before they are operational. In the meantime, these brands will be deprived of the ecological bonus of €4,000 (or €7,000 for the most modest households) because of their production in China which does not allow them to benefit from government purchasing aid, according to the new criteria for 2024.
Leapmotor could, however, benefit from European factories delivered on a platter thanks to Stellantis, which would represent an undeniable advantage for this newcomer to the European electric car market. In any case, this is what is being rumored this February 19, 2024, according to the media Automotive News Europe.
A snub from Stellantis to the Italian government
The manufacturing by Stellantis of electric cars from Chinese manufacturer Leapmotor is part of an agreement signed between the two companies. But, until now, we did not know where or when this agreement could materialize.
Carlos Tavares, boss of the Stellantis group, suggested during the Stellantis results conference on February 15 that Italy could host the production of Chinese models ” if it turned out to be profitable “. Other internal indiscretions seem to confirm this lead. Leapmotor cars could be assembled at the Mirafiori factory in Turin, which currently makes the Fiat 500e. This would be good news for this factory which has been experiencing periods of partial unemployment, due to a lack of sufficient European demand for the models produced there.
It is also a good way for Stellantis to bring the Italian government back into line. He criticized the group for favoring France over Italy, a criticism reinforced by the rumor of a merger with Renault. It must be said that production carried out in the group’s various factories in Italy has decreased. The government is worried about seeing unemployment rise, in addition to losing valuable know-how to produce the flagships of the Italian automobile industry. From 750,000 cars produced in Italy in 2023, Stellantis could return to almost a million vehicles with around 150,000 Leapmotor models, which seems particularly optimistic for the moment.
This is probably not really what the Italian government had in mind when it pressed the Stellantis group to reinvest more massively in the future of Italian factories. However, we will certainly have to be content with it.
Leapmotor, the first Chinese manufacturer to produce in Europe?
If the Mirafiori factory is already ready for use, it is not prepared to assemble Leapmotor electric cars, designed very differently from Stellantis models, such as Peugeot, Fiat or Maserati.
The project may take time to implement. The first Chinese models could be welcomed on Italian production lines. One of the sources reportedly told Automotive News Europe that this could start in 2026 or 2027. This seems particularly late given the lead that the Chinese brand could currently have against its competitors.
Finally, could MG or BYD factories be quicker to launch their European production? Again, it’s probably a little early to know who will win this race. BYD announced in December that the company will build its factory in Hungary, a country in which it already has a factory for the construction of electric buses. For its part, MG still does not seem to have decided on the location of a future factory. Depending on the country chosen, administrative delays will play a role in the arrival of these Chinese models produced in Europe.
With feigned hope, we always hope that by then an ecological bonus will still be available, but here again, nothing is less certain. In the absence of a bonus, this will allow Chinese manufacturers to avoid the customs fees that Europe wants to impose on them when importing finished electric cars.
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