FAW Group, mainland China’s oldest carmaker, plans to acquire a 10 per cent stake in Stellantis-backed electric vehicle (EV) maker Leapmotor, as the state-owned automotive giant looks to enhance its competitiveness in the segment, according to Cailian, a Shanghai-based financial news outlet.
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The investment would pave the way for the two companies to jointly develop new EV models, fine-tune supply-chain management and bolster overseas expansion, the report said.
Leapmotor declined to comment, while FAW could not be immediately reached for comment on Wednesday.
Two sources with knowledge of FAW and Leapmotor’s thinking said the companies were putting the final touches on an investment agreement that would benefit both parties by controlling costs and boosting research and development.
The deal would make FAW China’s first state-owned carmaker to own a stake in an EV start-up.
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