Hongqi in talks with Stellantis for European production

Chinese luxury car manufacturer hongqiHistorically linked to China’s political past (also known as Mao Zedong’s favorite brand), it is reportedly in talks with Stellantis to produce the vehicles in one The group’s Spanish factory, Covering multiple brands such as Fiat and Jeep. The hypothesis is part of Hongqi’s expansion in Europe and could be a strategic accelerator to quickly enter new markets, Reuters said, citing five sources familiar with the matter.

Is Hongqi in negotiations with Stellantis?

The negotiations will be led by Hongqi’s owner, state-owned company FAW, and conducted through its Chinese industrial partner. bounce engineAs two of the sources stated. It appears that both FAW and Stellantis will enable a “network” production path, leverage existing industrial capabilities, and potentially become investors in Leapmotor. Avoiding investments similar to the establishment of a new large factory. Translation: Costs that could reach hundreds of millions of dollars would be avoided.

Possible production in Europe

However, so far it is unclear whether an agreement will be reached. Talks are ongoing and they may fail. Hongqi, FAW and Leapmotor did not immediately comment: When contacted, Stellantis reiterated that it was in usual discussions with various global operators, without going into details. An operation that, if completed, could support Hongqi’s multiple launch plans A dozen electric and hybrid models in Europe by 2028and will represent the first real production foothold in Western Europe. During the same period, the company will also consider the option of Hong Kong as a possible location, and contacts with the production ecosystem of Zaragoza (where Stellantis will produce vehicles linked to Leapmotor) will remain at the center of a kind of industrial transfer strategy.