China’s Hongqi in talks to build cars at Stellantis Spain plant – report

Chinese state-owned automaker Hongqi is successful discussions with Stellantis implicit the anticipation of manufacturing vehicles astatine 1 of the European group's facilities successful Spain, Reuters reported.

The negotiations are being conducted via Leapmotor, the Chinese electrical conveyance shaper successful which some Stellantis and FAW – Hongqi's genitor institution – clasp equity stakes.

Such an statement would alteration Hongqi to sidestep the sizeable superior outlay progressive successful gathering a dedicated European factory, which could magnitude to hundreds of millions of dollars.

Sources indicated that Hongqi models would beryllium assembled astatine Stellantis's works successful Zaragoza – the aforesaid installation wherever Leapmotor accumulation is owed to commence aboriginal this year.

The Spanish tract is besides astatine the centre of abstracted precocious talks betwixt Stellantis and Leapmotor to jointly make an Opel-badged electrical SUV utilizing Leapmotor's technology, besides earmarked for Zaragoza.

The discussions are ongoing and determination is nary certainty that they volition effect successful a ceremonial agreement.

Historically known arsenic China's prestige authorities limousine marque, Hongqi has acceptable a people of 1 cardinal yearly conveyance income globally by 2030, with overseas markets accounting for astatine slightest 10% of that figure.

The marque has outlined plans to present 15 electrical and hybrid models crossed 25 European markets by 2028, with the EHS5 compact electrical SUV among the models intended for that push.

A proviso statement struck past twelvemonth betwixt Leapmotor and Hongqi volition spot Leapmotor supply an EV level to enactment Hongqi's planetary ambitions.

If the Spanish program goes ahead, it would people Hongqi’s archetypal manufacturing basal successful Western Europe.

Separately, sources noted that FAW has examined Hong Kong arsenic a imaginable alternate accumulation base, connected the ground that exports from the territory would beryllium taxable to little tariffs than goods shipped from mainland China.

No determination connected that enactment has been reached.

Hongqi is 1 of respective Chinese automakers – including state-owned groups Changan and Dongfeng – pursuing enlargement beyond China's borders arsenic contention successful the home marketplace intensifies.

"China’s Hongqi successful talks to physique cars astatine Stellantis Spain works – report" was primitively created and published by Just Auto, a GlobalData owned brand.

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