Volkswagen, Stellantis, JLR Make Big Moves in Chinese EV Market
Volkswagen and Stellantis have made significant investments in Chinese automotive ventures. Volkswagen is financing and developing two EV models for the mid-tier Chinese market, while Stellantis has invested €1.5 billion in Leapmotor for a 20 percent stake and a European sales joint venture. Meanwhile, Jaguar Land Rover is splitting into four EV-focused brands and will produce vehicles using Chery's platform.
Volkswagen is teaming up with Chery to develop two EV models for the Chinese mid-tier market. The German automaker will invest $700 million for a 4.99 percent stake in Chery's Exeed brand and co-develop the models. These vehicles will initially be sold in China and later exported to overseas markets.
Stellantis has also made a significant investment in China, acquiring a 20 percent stake in Leapmotor for €1.5 billion. The two companies will establish a joint venture for European sales. This move signals Stellantis' commitment to the growing Chinese EV market.
In other news, Jaguar Land Rover is restructuring its brands. The Freelander brand will be independent of both Chery's and Jaguar Land Rover's existing lineups. The new Freelander models will be produced at Chery Jaguar Land Rover's plant in Changshu, China, and sold initially in China before being exported to other markets. Additionally, Jaguar Land Rover will split into four separate EV-focused brands: Range Rover, Discovery, Defender, and Jaguar.
These strategic partnerships and investments highlight the growing importance of the Chinese EV market. Volkswagen and Stellantis are both expanding their presence in China, while Jaguar Land Rover is reorganizing its brands to focus on electric vehicles. The future of these collaborations and the impact on the global automotive industry remain to be seen.
