The MoU signed between Leapmotor and FAW also includes collaboration on its parts supply chain.
While Leapmotor had previously already shacked up with Stellantis, it seems that the Chinese upstart automaker still has quite the roving eye. Such is as it was recently announced for Leapmotor to have recently signed a preliminary agreement with the FAW Group, to collaborate in the development of a new generation of smart new energy vehicles (NEVs) and cooperate on its parts supply chain.
The two companies signed a Memorandum of Understanding (MoU) on Strategic Cooperation on March 3rd, at FAW Group’s headquarters in Changchun City. Both parties aim for this collaboration to enhance their product competitiveness through technical integration. They have further agreed to deepen capital cooperation, with the goal of strengthening their respective industrial supply chains.
FAW representatives have emphasised that the two parties would work together efficiently to promote strategic cooperation and achieve “fruitful” results.
Now for those who might not have heard of FAW before, they are currently the second largest of the “Big Four” state-owned car manufacturers in China. Brands currently under its corporate umbrella include Hongqi and Bestune, though it is perhaps better known as the joint venture partner in its home market for companies like Toyota and Volkswagen.
The FAW Group sold almost 3.2 million vehicles globally last year, 339,000 of which were electrified vehicles, representing a 41% increase from the previous year.
As for Leapmotor meanwhile , this upstart new energy vehicle manufacturer first emerged exactly a decade ago and previously made headlines when Stellantis acquired a 20% stake in the company back in 2023.
Leapmotor’s global sales more than doubled to 293,724 vehicles last year, with a few of that total making their way to Malaysia in the form of its C10 e-SUV, which made its local debut there late last year.
