Hongqi eyes Stellantis Spain plant
- Hongqi, the Chinese luxury brand owned by FAW, is in talks with Stellantis to build vehicles at a Spanish plant for its Europe expansion. - The talks are being handled through Leapmotor and could help Hongqi launch more than a dozen European electric and hybrid models by 2028. - Local assembly would reduce tariff exposure as Europe tightens rules on China-made electric cars. (ec.europa.eu)
Hongqi is in talks with Stellantis to build vehicles at one of Stellantis’s plants in Spain as the Chinese luxury brand pushes deeper into Europe. (aol.com) Reuters reported the talks on April 28, citing five people familiar with the matter. Hongqi is owned by China’s state-backed FAW Group, and the discussions have not been announced publicly. (aol.com) (bnnbloomberg.ca) The negotiations are being facilitated by Leapmotor, the Chinese electric-vehicle maker in which both FAW and Stellantis hold stakes, according to Reuters. One person told Reuters the arrangement would let Hongqi start European production quickly without building a new factory from scratch. (money.usnews.com) (autonews.com) The plant has not been identified, but Reuters said Zaragoza is the most likely site. Stellantis already has major Spanish operations in Zaragoza, Vigo and Madrid. (globalbankingandfinance.com) (stellantis.com) Spain has become a more attractive auto base for battery-electric production. In December 2024, Stellantis and CATL said they would invest up to €4.1 billion in a lithium iron phosphate battery plant in Zaragoza, with production planned by the end of 2026. (stellantis.com) Hongqi laid out the broader expansion plan at Auto China 2026. The brand said it wants to be in more than 110 countries and regions with more than 650 dealerships by 2028. (businesswire.com) Europe is a key part of that push. Reuters reported last year that Hongqi planned to launch 15 electric and hybrid models across 25 European markets by 2028 and build a dealer network of more than 200 outlets. (goldsea.com) (marketscreener.com) The timing also reflects Europe’s tougher trade stance on Chinese-built electric cars. The European Commission’s definitive countervailing duties on battery electric vehicles from China took effect on October 30, 2024. (ec.europa.eu) Building in Spain would give Hongqi a faster route into Europe and a way to assemble inside the bloc rather than ship every car from China. Stellantis and Hongqi had not publicly confirmed a deal as of April 29. (aol.com)
