Express. Home of the Daily and Sunday Express. HOME News Royal Showbiz & TV Sport Comment Finance Travel Entertainment Life & Style UK Politics Royal US World Science Weather Weird History Nature Sunday InYourArea The head of Vauxhall’s parent company, Stellantis, said the company would not become a Trojan Horse for Chinese car companies. 20:43, Thu, Oct 26, 2023 | UPDATED: 20:43, Thu, Oct 26, 2023
Vauxhall’s parent company, Stellantis, has just bought a 21 percent stake in a Chinese car company (Image: PA)
A British car company has made a huge £1.3billion deal to benefit from an incoming invasion of Chinese cars.
The parent company to British manufacturer Vauxhall, Stellantis, has purchased a 21 percent stake in Leapmotor, a Chinese electric car company.
The firm, which also owns Peugeot, said the company will benefit from what it describes as the “Chinese offensive”.
China has made massive gains in the British car market in recent months with fresh electric offerings from Chinese-owned MG and Lotus.
As part of the latest deal, Stellantis has invested £1.3bn in the company located in Hangzhou – according to the Telegraph.
Stellantis owns several car companies (Image: Getty)
The deal comes just months after Stellantis’ Carlos Tavares warned about an “invasion” of cheap cars from China into the UK and European markets.
Mr Tavares had originally predicted a terrible fight between the two competing sides.
He admitted on Thursday: “The Chinese offensive is visible everywhere.”
Stellantis also owns Peugeot (Image: Getty)
Despite his fears over the Chinese invasion, Mr Tavares said the deal with Leapmotor meant his company and its cars could benefit from the offensive rather than suffer as a result of it.
Mr Tavares is one of many experts who fear the impact of Chinese cars on the domestic European market.
These cars benefit from a supply of locally made batteries and significant state subsidies which help lower their prices.
Earlier this year, the European Commission began an investigation into cheap Chinese electric cars.
Experience the Express like never before Advert-free experience without interruptions. Rocket-fast speedy loading pages. Exclusive & Unlimited access to all our content.Head of the commission, Ursula von der Leyen, claimed the state subsidies were the reason why the prices of the cars were “artificially low”.
Following the deal, Mr Tavares has dismissed that it will turn his company into a Trojan Horse for Chinese car makers.
In a statement, Mr Tavares said: “We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who have a similar tech-first, entrepreneurial mindset to ours.
“Through this strategic investment, we can address a white space in our business model and benefit from Leapmotor’s competitiveness both in China and abroad.”
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