TMTPOST --  Chinese electric vehicle (EV) maker Zhejiang Leapmotor Technologies Ltd. and European partner Stellantis NV said to drop their plan to Make EVs in Poland under pressure from the Chinese government.

Credit：Stellantis

The joint venture founded by Leapmotor and Stellantis no more planned building for the B10 electric crossover at Stellantis’s Tychy plant in Poland, and is weighing alternative production sites for its second EV model, Reuters reported, citing people with knowledge of the matter. It is reported that Leapmotor International, the venture, is evaluating Stellantis factory in Eisenach, Germany that produces Opel models and its Trnava plant in Slovakia as alternatives.

The shift in production plan was made on heels of Beijing privately told automakers to pause their big investments in Euroopean countries that supported the recent hefty tariffs on Chinese-made EVs, according to the report.

The European Commission disclosed October 4 its proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs. The announcement cleared hurdles for the EU to introduce up to 45% definitive tariffs following an anti-subsidy investigation.These tariffs came into effect on October 30. Poland is reportedly one of ten EU members are in favor of tariffs. Germany, the top economy and major car producer of the region, Hungary, Malta, Slovenia and Slovakia reportedly opposed hiking the tariffs.

The Chinese government is pressuring domestic automakers to halt searches for production sites in the EU and settling new deals, and generally keep a low profile while Beijing’s negotiations over EV tariffs are ongoing, Bloomberg reported in October. State-owned Dongfeng Motor Group Co. was reported to have already halted plans to potentially manufacture cars in Italy in response to the warnings.  Because of the ongoing tariff negotiations, another state-owned company Chongqing Changan Automobile Co. was said to cancel an event to launch its brand in Europe that was originally planned for this week in Milan.

Reuters reported Chinese automakers were asked at a meeting with China’s Ministry of Commerce on Oct. 10 that they should pause their significant investment plans in EU countries that had backed the tariff proposal.

Leapmotor and Stellantis displayed the upcoming B10 EV at the Paris auto show four days after the abovementioned meeting. Both companies have not disclosed where the B10 SUV will be built, and it was not clear if factors other than the pressure from Beijing on China’s automakers had played a role in the decision to shift planned production of the B10 from Poland.

Leapmotor has announced the B10 as the inaugural vehicle in a series of EVs designed for international markets, including Europe. Stellantis CEO Carlos Tavares highlighted the partnership's aim to deliver "high-tech, affordable" EVs to consumers outside China.

B10 is Leapmotor's first global C-SUV and first of many upcoming models that will be launched as part of Leapmotor’s B-series. The modle is built on Leapmotor’s advanced LEAP 3.5 architecture, a highly integrated platform that provides cutting-edge features like ADAS (Advanced Driver Assistance Systems), a customizable digital cockpit, and intelligent driving capabilities. Leapmotor  said the debut of B10 highlights its rapid growth in Europe, with over 200 dealers already established across 13 markets, aiming to reach 500 sales points by 2025.

Leapmotor International aims to sell 500,000 units outside of China by 2030, according to Stallantis’ presentation about earnings for the third quarter of 2023. It said Leapmotor targets sales of 1 million units annually in China in the long run, capitalizing on position as tech-led, pure-EV domestic leader.