(Alliance News) - Stellantis has entered into preliminary discussions with the Chinese brand Hongqi, controlled by FAW Group, to evaluate vehicle production in Europe.
The negotiations - as reported by Milano Finanza on Wednesday - also involve Leapmotor, in which Stellantis holds a 20% stake and which is already linked to Hongqi through technological agreements.
Among the options being considered is the use of the Zaragoza plant in Spain, where Leapmotor models are scheduled for production, thereby avoiding new industrial investment. The group has also explored contacts with Dongfeng, Xiaomi, and Xpeng.
For Hongqi, this would represent an entry point into the European market, while Leapmotor aims to strengthen its positioning with a second premium electric brand by 2027.
Despite more than 596,000 deliveries in 2025 and a positive net profit, margins remain limited and are partially supported by carbon credits. The objective is to improve the product mix and support international expansion, given that 36% of sales already occur outside China, with a target of 60%.
On the Italian front, political pressure on Stellantis is mounting regarding the situation at the Cassino plant, where production has been reduced to just a few working days. This has led to extensive use of social safety nets and repercussions for the local supply chain, fueling fears of a structural crisis.
By Antonio Di Giorgio, Alliance News reporter
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