(Alliance News) - Stellantis has decided to cancel plans to produce the Chinese brand Leapmotor's second electric model at its plant in Tychy, Poland, due to new Chinese government policies, Milano Finanza explained Tuesday.

Beijing has banned its companies from making significant investments in European countries that supported the introduction of tariffs on Chinese electric vehicles, including Poland.

The model concerned was Leapmotor's B10 electric crossover, but in October Chinese authorities asked automakers to suspend investments in countries that voted in favor of duties of up to 45 percent. Poland is among them, while Germany and Slovakia have opposed the proposal, the financial newspaper further reports.

The joint venture between Stellantis and Leapmotor is now considering alternatives, such as Stellantis plants in Eisenach, Germany, or Trnava, Slovakia.

Meanwhile, the Tychy plant continues to produce Leapmotor's T03 model, but it is unclear whether this production will be scaled back.

Finally, it seems unlikely that Italian plants, such as the Mirafiori plant in Turin, will be involved in the production of Leapmotor vehicles, as Italy has voted in favor of tariffs and China has banned investment in countries that support such tariffs.

By Claudia Cavaliere, Alliance News reporter

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