Chinese electric vehicle (EV) manufacturer Leapmotor has undergone a significant restructuring, including the dissolution of its overseas business development team, following the establishment of its joint venture, Leapmotor International, with European automaker Stellantis NV earlier this month.
In a major shake-up of its marketing system, Leapmotor has disbanded its overseas business unit, with team members reassigned to various departments including vehicle product lines, services, management and marketing, and operations, according to a report by local media outlet 21jingji.
See also:Â Leapmotor International Joint Venture Launched, Bringing EVs in Europe in September
The decision to dismantle the overseas business unit may be a strategic move in line with the partnership agreement with Stellantis, a source familiar with Leapmotor’s operations indicated, suggesting that the joint venture will now handle all overseas business operations.
Established in July 2020 with just one employee, Leapmotor’s overseas business division remained small, with fewer than five employees after a year and fewer than 20 before its dissolution, the report stated. This stands in contrast to the hundreds typically seen in overseas business units of Chinese companies emphasizing international markets.
See also:Â Stellantis and Leapmotor Set Sights on Indian Electric Vehicle Market
Stellantis’ investment of 1.5 billion euros ($1.6 billion) in Leapmotor, announced on October 26, 2023, for a roughly 20 percent stake, solidified the European automaker as Leapmotor’s largest outside shareholder. The joint venture, Leapmotor International, was officially launched on May 14 and is set to commence vehicle sales in Europe from September.
Headquartered in Amsterdam, the Netherlands, Leapmotor International is majority-owned by Stellantis with a 51 percent stake, while Leapmotor holds the remaining 49 percent. The joint venture is led by Xin Tianshu, vice president of Stellantis China, who serves as its CEO.
See also:Â Leapmotor to Produce Electric Vehicles at Stellantisâ Tychy Plant in Poland
Leapmotor International’s market entry will include countries such as Belgium, France, Italy, Germany, Greece, the Netherlands, Romania, Spain, and Portugal, with plans to expand its European sales network to 200 by year-end. Expansion into South America, the Middle East, Africa, and the Asia-Pacific region is slated to begin in the fourth quarter.
In addition to disbanding its overseas team, Leapmotor has merged its three original sales teams under the leadership of chief operating officer Xu Jun. These teams were responsible for dealer business, ride-hailing car business, and retail business, respectively.
See also:Â Leapmotor Launches Updated Models with Lower Pricing Amidst Intense Competition
The restructuring reflects Leapmotor’s strategic realignment following its partnership with Stellantis, as the company aims to streamline operations and focus on its international expansion efforts.
