CORRECTED-UPDATE 3-Stellantis stops making Leapmotor EV in Poland, eyes other options

Reuters
04-08
CORRECTED-UPDATE 3-Stellantis stops making Leapmotor EV in Poland, eyes other options

Corrects paragraph 6 to say "outside China", not "in China"

Assembly of Leapmotor's T03 at Tychy plant ended on March 30

Stellantis says it is 'evaluating different production options'

Poland backed EU tariffs on Chinese EVs

MILAN, April 8 (Reuters) - Stellantis STLAM.MI has stopped making its Chinese partner Leapmotor's 9863.HK T03 small electric car in Poland and is assessing alternative production options, the Franco-Italian automaker said on Tuesday.

The group "is no longer assembling Leapmotor's T03 model at the Tychy plant, in Poland, since March 30," it said in a statement.

"While the company remains fully engaged in the launch of Leapmotor vehicles in Europe, at the moment it is evaluating different production options," Stellantis said, without providing further details, including whether the model might be relocated to another European plant.

The production halt was first reported on Monday by French newspaper Les Echos.

Stellantis did not say what caused the decision to stop T03 assembly.

A person with knowledge of the matter said Stellantis and Leapmotor were not planning for now to resume T03 production in Europe. They are looking to upgrade T03 to A-series models that will be produced outside China from 2026, the person added.

Last year, the partners scrapped plans to build in Poland a second Leapmotor model, the B10 electric crossover.

That decision came after the Chinese government privately told automakers to pause big investments in European countries that backed extra European Union tariffs on Chinese-made EVs, sources told Reuters in November.

Poland was among the EU countries that supported tariffs.

Spain, which abstained on EU tariffs, is now favoured for the production of the Leapmotor B10 EV.

Stellantis has a 51% stake in the Leapmotor International joint venture with its Chinese partner, with exclusive rights to export, sell and manufacture Leapmotor EVs outside China.

(Reporting by Giulio Piovaccari in Milan and Zhang Yan in Shanghai. Editing by Alvise Armellini and MarkPotter)

((giulio.piovaccari@thomsonreuters.com))

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