Stellantis in advanced talks with Leapmotor to develop Opel EV

Stellantis is in advanced discussions with China’s Leapmotor to jointly develop an Opel-branded electric SUV, which would use the Chinese firm’s technology and be produced at the Zaragoza plant in Spain, according to three sources. Production is expected to begin in 2028, with a target of 50,000 vehicles annually. The model would share its architecture with Leapmotor’s B10 compact SUV, which is also set to be assembled in Zaragoza for the European market.

The proposed partnership would allow Stellantis to reduce development costs and timelines as it recalibrates its electrification strategy. The group has recently shifted focus towards hybrid vehicles and earlier announced a $25 billion writedown linked to scaling back EV plans. It is also seeking to counter competition from Chinese brands such as BYD in Europe and improve utilisation of its regional plants.

Under the discussions, Leapmotor would supply key technologies and components, including electronic and electrical systems, while Opel would handle exterior design. A significant portion of development is expected to take place in China. Talks on the project, codenamed O3U, began in late 2025 and an agreement could be reached as early as this month, one source said.

Stellantis said it maintains regular engagement with Leapmotor on expanding collaboration but declined to comment further. Leapmotor said it is in talks with partners, including Stellantis, primarily to supply components and not for platform-level collaboration. It did not comment on specifics of the Opel project.

The two companies partnered in 2023 when Stellantis acquired around a 20 per cent stake in Leapmotor and formed a joint venture, Leapmotor International, to manage sales and production outside China. Last month, Leapmotor said it expects to begin mass production in Spain from October, with some projects with Stellantis in advanced stages of negotiation.

Separately, Stellantis is studying the use of Leapmotor’s EV technology for the next-generation Opel Mokka B SUV, with potential production shifting to Spain from France, according to one source. Opel accounted for about 21 per cent of Stellantis’ European sales in 2025, with Germany as its largest market. The companies have also held preliminary discussions on developing an Alfa Romeo model based on the same architecture at the Zaragoza facility, as well as additional small cars for the A-segment, which would require separate production lines.

While Stellantis has moderated its EV plans, electric vehicles remain part of its strategy in Europe, with the Opel SUV project among the most advanced of several ongoing discussions with Leapmotor.