Stellantis pushes Leapmotor European parts past 40% in Spain

Stellantis confirmed Oct. 20 that local parts procurement for Leapmotor electric vehicles built in Spain exceeded 40% of total component value, securing European origin status to bypass European Union import duties.

The disclosure marks a major supply chain transition for Chinese automaker Zhejiang Leapmotor Technology. The company abandoned its earlier semi-knocked-down assembly operations in Poland to build vehicles directly within Western Europe.

Óscar Fernández Puente, head of small and compact car manufacturing at Stellantis, detailed the procurement milestone following the launch of the Leapmotor B10 electric sport utility vehicle in Zaragoza.

The Figueruelas factory in Zaragoza formally started commercial series manufacturing of the B10 on Oct. 16. The compact sport utility vehicle shares assembly lines with the Opel Corsa, Peugeot 208 and Lancia Ypsilon.

Leapmotor International, the joint venture owned 51% by Stellantis and 49% by Leapmotor, allocated a second model to the facility on Oct. 19. The B05 electric hatchback will enter mass production there in early 2027.

The 40% domestic value threshold carries immediate financial consequences for the venture. European Union customs guidelines require non-member state brands to generate substantial local value addition to qualify as European manufactured goods.

Vehicles imported directly from Leapmotor factories in China face a 20.7% countervailing duty imposed by the European Commission. That tariff comes on top of the standard 10% automotive import levy, bringing total import duties to 30.7%.

Meeting the 40% local content requirement exempts the Zaragoza-built B10 from countervailing tariffs. The exemption eliminates thousands of euros in cross-border import costs per vehicle across the European bloc.

Stellantis established Leapmotor International in 2023 through a $1.6 billion transaction. The capital injection gave Stellantis a 21% direct equity stake in Leapmotor and exclusive rights to manufacture Leapmotor products outside China.

The initial European production plan relied on the Stellantis factory in Tychy, Poland. The Polish site began trial assembly of the Leapmotor T03 urban electric minicar in June 2024 using imported Chinese kits.

That Polish operation ended abruptly on March 30, 2025, when Stellantis halted T03 assembly lines. Simple semi-knocked-down assembly using foreign kits failed to generate sufficient local economic value to sidestep EU anti-subsidy duties.

Diplomatic strains also disrupted the Polish footprint. The government of Poland voted in favor of the European Union countervailing tariffs against Chinese battery electric vehicles during a decisive European Council ballot.

China's Ministry of Commerce subsequently urged domestic automakers to halt major capital investments in European nations that endorsed the tariffs. The advisory accelerated Leapmotor's complete withdrawal from the Tychy industrial site.

Spain abstained from the tariff vote, preserving working ties with Chinese automakers. The Iberian country offered lower operating overheads, local battery assembly investments and available capacity across established Stellantis production plants.

Spanish components now provide the structural foundation for Leapmotor's European push. Regional parts suppliers in Aragon deliver exterior stampings, wiring harnesses, thermal systems and structural sub-assemblies directly to the Figueruelas line.

Raising local content above 40% prepares the automaker for stricter regulatory hurdles. France and Germany are drafting rules to restrict electric vehicle purchase subsidies to models containing at least 70% European parts value by 2028.

Chinese competitors are executing similar manufacturing shifts to avoid protective trade measures. BYD is erecting a greenfield passenger vehicle factory in Hungary, while Chery Automobile retrofitted a former Nissan facility in Barcelona, Spain.

Securing factory capacity at legacy European plants allows Chinese manufacturers to circumvent trade remedies faster than building new sites. Greenfield factory construction in Europe regularly requires three to four years for environmental permitting and construction.

Stellantis gains factory utilization for assembly lines that faced slowing sales of native European battery electric models. The company absorbed Leapmotor compact vehicle architectures without dedicating capital to separate assembly buildings.

The joint venture plans to begin series production of the B05 electric hatchback at the Zaragoza plant in the first quarter of 2027, the company said.

The company has not disclosed the initial annual unit capacity allocated to the B10 at Zaragoza, and neither automaker has confirmed whether assembly operations will ever resume in Poland.