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China's Hongqi, eyes Stellantis Spain plant for European expansion
The deal could give Hongqi its first manufacturing foothold in western Europe and help it launch more than a dozen EV and hybrid models by 2028.
- Chinese luxury automaker Hongqi is in talks with Stellantis to build vehicles at a Spanish plant, a partnership facilitated through Leapmotor that would mark the brand's first manufacturing foothold in western Europe.
- Hongqi, meaning "red flag," targets 1 million annual sales by 2030 with at least 10% outside China and plans to launch more than a dozen electric and hybrid models across Europe by 2028.
- Both state-owned automaker FAW and Stellantis are investors in Leapmotor, which supplies EV platforms to Hongqi and is negotiating to develop an Opel-branded electric SUV for production at Zaragoza.
- The arrangement avoids spending hundreds of millions of dollars on a new factory. "This was the way that Hongqi can start European production quickly," said a source with direct knowledge of the talks.
- While talks remain ongoing and may not lead to a deal, Hongqi has also evaluated Hong Kong as a production location to face fewer export tariffs, though no final decision has been made regarding Spain.
19 Articles
19 Articles
The Chinese luxury car group Hongqi is in discussion with Stellantis to assemble its cars in one of the Spanish factories of the fourth world car manufacturer in order to accelerate its expansion into...
Exclusive: China's Hongqi, once favoured by Mao, eyes Stellantis Spain plant for European expansion
Chinese luxury automaker Hongqi, famed as Mao Zedong's preferred car brand, is in talks with Stellantis to build vehicles at one of the Fiat-to-Jeep owner's Spanish plants as it expands in Europe, five sources familiar with the matter said.
China's Hongqi could soon begin a collaboration with Stellantis, which would allow them to use one of its own factories in Spain for production.
Mao's Favorite Brand Wants A European Factory, And Stellantis Has The Keys
Future Hongqi models could be assembled at a Stellantis plant in Spain. The talks are said to run through the Leapmotor joint venture link. European production would help Hongqi avoid the EU’s tariffs on imports. China’s Hongqi is reportedly in talks with Stellantis to build vehicles in Spain. The discussions are allegedly being conducted through Leapmotor, which sounds complicated. However, Stellantis has a 20% stake in Leapmotor, while Hongqi’…
Chinese manufacturers are looking for production capacity in Europe. Meanwhile, some European manufacturers are seeing their factories turn around... The article Stellantis opens its European factories to Chinese manufacturers in large measure appeared first on Automobile Clean.
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