Stellantis aims to manufacture Chinese electric vehicles in Canada and Mexico, but not in the United States.

      TL;DR: Stellantis CEO mentions that the company sees potential for Chinese Leapmotor electric vehicles in Canada and Mexico, but there's currently "no space" for them in the US. On Thursday, Stellantis CEO Antonio Filosa stated that there are opportunities to manufacture and sell Chinese-branded vehicles in Mexico, with possible prospects in Canada. However, he noted that the situation in the United States is different, affirming that there is presently no room for such vehicles there. This acknowledgment is significant as Stellantis, which owns Jeep, Ram, Dodge, and Chrysler, is considering using its factories to produce vehicles designed by a Chinese competitor, Zhejiang Leapmotor Technology, in which Stellantis owns a 21% stake. Additionally, Stellantis has a 51% interest in a joint venture with Leapmotor, granting it exclusive rights to sell and manufacture Leapmotor products outside of greater China, effectively positioning it as both a traditional Detroit automaker and a licensed distributor of Chinese electric vehicles.

      The most likely site for production is Stellantis' assembly plant in Brampton, Ontario, which has not been active since production of the Dodge Charger and Challenger ceased in December 2023. Bloomberg indicated in April that Stellantis was in discussions with Leapmotor about producing electric vehicles at this dormant facility. Canada’s trade agreement with China allows for 49,000 Chinese-made electric vehicles to be imported each year at a 6.1% tariff, but manufacturing Leapmotor vehicles in Brampton would bypass even that minimal tariff, as the vehicles would be made in Canada.

      Filosa framed the partnership as an avenue for Stellantis to boost sales, gain insights from Leapmotor, and share capital costs, highlighting the importance of learning from Leapmotor’s fast engineering capabilities, cost efficiency, and software development — areas where Stellantis has faced challenges internally. Leapmotor’s compact electric hatchback, the T03, has been available through Stellantis dealerships in 13 European markets since September 2024, starting at around €18,900, followed by the B10 electric compact SUV, priced at about €36,400, which launched in early 2026.

      Earlier, Stellantis had further extended its collaborations by announcing a European joint venture with another Chinese automaker, Dongfeng, which includes shared efforts in sales, distribution, manufacturing, purchasing, and engineering. The political landscape in the US currently makes it unfeasible to produce Chinese-branded vehicles domestically. More than 120 members of the House have urged President Trump to exclude Chinese automakers, and bipartisan legislation introduced on May 12 seeks to prohibit connected vehicles and components associated with China.

      Filosa’s differentiation of "space" in Canada and Mexico versus "no space" in the US reflects the political reality rather than market demand, particularly as American consumers are spending an average of $49,000 on new vehicles while Chinese models are available starting under $15,000. Stellantis also announced a potential partnership with Jaguar Land Rover focused on US product development, with Filosa stating, "JLR is a partnership that can work very well for both parties," intended for the US market where Chinese brands face restrictions.

      The Leapmotor and Dongfeng partnerships target other markets, emphasizing a straightforward strategy: leveraging Chinese engineering where politics allows while relying on legacy brands in areas where they don’t. Stellantis is navigating both sides of the trade divide, motivated by competitive dynamics, as evidenced by BYD surpassing Tesla as the world’s top EV seller in 2025 and Xiaomi introducing an SUV that undercuts the Model Y.

      Chinese manufacturers create vehicles that traditional automakers struggle to compete with on price and technology. Stellantis's strategy is not to confront this competition directly but to collaborate, utilizing Chinese engineering to fill its own factories and cater to consumers seeking affordable electric vehicles. Stellantis recently presented a $70 billion turnaround plan aimed at a 35% sales increase in North America, particularly through Ram Trucks and a revival for Chrysler, projecting positive cash flow by 2027.

      The partnerships with Leapmotor and Dongfeng represent a parallel approach. While Stellantis invests in rejuvenating its legacy brands for the US market, it is simultaneously developing a pipeline of vehicles powered by Chinese technology for all other regions. The Brampton plant, inactive for two and a half years, could become the intersection of these two strategic paths.