One week after reporting plans for a press event launching its new joint venture, Stellantis and Leapmotor have officially begun the new business venture together. The new JV, named “Leapmotor International,” will expand to sell Chinese EVs in Europe this fall, with additional markets to follow.
Today’s event is merely a confirmation of a launch we’ve been expecting for quite some time. Last fall, European automotive conglomerate Stellantis ($STLA) took a $1.6 billion stake in Chinese OEM Leapmotor.
In addition to gaining a 20% stake in Leapmotor, Stellantis’ investment also included forming a new joint venture in which Stellantis owns a 51% stake to sell the Chinese brand’s EVs in other markets. Europe had immediately been confirmed in the JV plans, but Stellantis CEO Carlos Tavares wouldn’t rule out the US as another possible option.
This past March, the new partners announced their joint venture had been approved after Stellantis gained regulatory approval in China to continue its stake.
Last week, we followed reports that CEOs from both Leapmotor and Stellantis were preparing a press event to officially launch the Leapmotor International joint venture and divulge more specific plans for where the latter will sell the former’s Chinese-made EVs around Europe. We now have our answer.
Source: Leapmotor International
Leapmotor Intl. to bring Chinese EVs to Europe and beyond
Per a release from Stellantis today, Leapmotor International is officially open for business following a press conference in China attended by Carlos Tavares and Jiangming Zhu, the respective CEOs. The companies shared intentions to scale quickly to bolster the value of each brand internationally.
The joint venture is headquartered in Amsterdam, Netherlands, and led by former Stellantis China executive Tianshu Xin as CEO. Carlos Tavares shared his thoughts on the joint venture and the potential Chinese EVs from Leapmotor hold in markets throughout Europe:
The creation of Leapmotor International is a great step forward in helping address the urgent global warming issue with state-of-the-art BEV models that will compete with existing Chinese brands in key markets around the world. Leveraging our existing global presence, we will soon be able to offer our customers price competitive and tech-centric electric vehicles that will exceed their expectations. Under Tianshu Xin’s leadership, they have built a compelling worldwide commercial and industrial strategy to quickly ramp-up the sales distribution channels to support Leapmotor’s robust growth and create value for both partners.
The joint venture is already laying the groundwork in Europe to bring Leapmotor’s Chinese EVs to new markets, starting with the family-friendly C10 and the T03 compact urban commuter (both pictured above).
Stellantis said it will wield its existing sales channels in Europe to launch and distribute the Chinese EVs as early as September 2024, targeting these markets first: Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, and Romania. Stellantis expects to have at least 200 points of sale throughout these markets by year’s end and over 500 by 2026.
In addition to Europe, Stellantis shared plans also to begin selling Leapmotor’s Chinese EVs in other regions before the end of the year as well:
The Middle East & Africa
Turkey, Israel ,and French Overseas
India & Asia Pacific
Australia, New Zealand, Thailand, Malaysia, and India
South America
Brazil and Chile
FTC: We use income earning auto affiliate links.More.
Oil prices eased on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week.
Anadolu | Anadolu | Getty Images
U.S. crude oil futures rose about 4% on Monday after OPEC+ increased production at a steady rate, easing investor fears that the group might boost output even faster.
West Texas Intermediate futures rose $2.53, or 4.16%, to $63.32 per barrel. Global benchmark Brent was up $2.34, or 3.73%, at $65.12 per barrel.
The eight producers in OPEC+, led by Saudi Arabia, agreed to increase production by 411,000 barrels per day in July, the third consecutive month the group has boosted output at that rate.
“There were market concerns of a faster unwind process,” said Giovanni Staunovo, commodity analyst at UBS, told clients in a note Saturday. “For now, the oil market remains tight, indicating it can absorb additional barrels,” Staunovo said.
The electric motorcycle market is a small and highly interconnected one, with a limited amount of suppliers and an even smaller number of actual honest-to-goodness motorcycle manufacturers. While Covid-era progress led to a series of highly-funded rapid advancements and flashy announcements, the last few years have been hard on the industry as funding and excitement have both dwindled, resulting in a smaller number of big releases. So it makes sense that people would jump at news that Honda is now producing its first electric motorcycle and that you can already buy it. The only problem is that none of that is true – finally some real fake news.
In the last few days, a number of news outlets ran with a story claiming Honda was now producing and selling its first ever electric motorcycle, a bike known as the E-VO. While some articles presented a fairly grounded and accurate analysis of the situation, others jumped on the more clickbaity bandwagon.
Like many rumors, the story does have some truth to it. There is an interesting-looking cafe racer-styled E-VO bike that was just announced, and its logo does partially include a red Honda badge, but that’s where things start to go awry as some articles played a bit fast and loose with the facts.
The main issues with the story heard ’round the internet are that 1) Honda has already produced multiple electric motorcycles, 2) the E-VO isn’t really a Honda, and 3) you can’t actually buy the bike, at least not the way many headlines would have you believe.
Advertisement – scroll for more content
The Chinese launch of the Honda-Wuyang E-VO
To be fair, even Electrek wasn’t spared, with its own story repeating several dubious claims seen elsewhere around the internet, among other smaller mistakes such as a strange swipe at LiveWire for not producing DC fast-charging electric motorcycles, which it famously does.
But let’s break down each of the errors or flashy clickbait headlines that duped many journalists and electric motorcycle fans alike.
The first major issue is that the premise is wrong. Honda has built multiple electric motorcycles in the past, though generally smaller designs with step-through frames. The E-VO would be a new design direction, taking on an eye-catching cafe racer design, but let’s not forget that models like the all-electric Honda PCX Electric were launched back in 2018. In fact, Visordown strangely mislabeled a photo of a PCX Electric, referring to it as an E-VO in its own article a few days ago. (And to be fair, not everyone whiffed on this one, with outlets like RideApart and CycleWorld giving even-handed and accurate coverage to Honda’s e-moto efforts).
Second, this motorcycle isn’t even a Honda. If you look closer at the badging, you’ll see it’s labeled as “Wuyang Honda” with the first word obviously printed much smaller in the logo to obscure it in favor of Honda’s much stronger brand reputation. To put it simply, the E-VO is produced by the Chinese company Wuyang, in which Honda invested in as part of a joint venture. Wuyang-Honda is a Chinese company owned by the major Chinese automaker GAC. It does produce some Honda-developed motorcycles for the Chinese market (like the CB series, CBR, etc.), but it also produces its own domestic market-only models. The latter is what the E-VO is. It’s not a Honda and it’s not produced by Honda. It’s produced by Wuyang-Honda, which is a Chinese company partially funded by the Japanese company Honda to make money from the Chinese market. It’s similar to how Ducati doesn’t really make those Ducati electric bicycles, but rather engages in a licensing agreement that lets another company produce them and print a famous name on the side.
And that brings us to the third major issue glossed over in the E-VO launch – that you can’t really buy it. Well, some people can, but not you. At least, not unless you happen to be Chinese or living in China. As mentioned above, this isn’t a Honda motorcycle that you can buy at a Honda dealer. It’s a Wuyang motorcycle that was recently launched in China and only sold in China. It wasn’t designed for export and doesn’t meet any other international regulations or safety standards because it wasn’t designed for any other markets outside of China.
Electrek’s Take
I’ve been a fan of electric motorcycles for a long time, riding and covering them with excitement as I’ve watched the industry progress. I talk the talk and I walk the walk. I don’t even own a car, as my family gets around entirely on electric motorcycles, e-scooters, and e-bikes. I don’t intend to unfairly call out other news outlets or even my own colleagues, but I do think that accuracy in reporting on such a nascent industry is important.
Accuracy in reporting isn’t just about keeping the industry well-informed but also ensuring realistic expectations among the public. Just like all of those stories popping up a few years ago to the effect of “GM is producing a $14,000 electric pickup truck” turned out to be clickbait (they were electric mini-trucks produced in China, for the Chinese market, by Chinese companies in which GM invested), the E-VO has also turned into something of a white whale. For years, riders have begged major manufacturers like Honda to get on board with electric motorcycles. And so when there’s even an inkling of progress on that front, the story can get ahead of itself.
That isn’t to say that Honda won’t ever produce a full-sized e-moto or street bike. Perhaps the E-VO will sell well in China and Honda will look favorably upon Wuyang’s work there. But the moment when an honest-to-goodness Honda electric motorcycle lands is still years away, and no amount of wishful thinking or creative writing is going to change that.
FTC: We use income earning auto affiliate links.More.
The French are saying “non, merci” to Tesla, as sales crashed to just 700 units in May – a level not seen in more than three years.
The Model Y changeover was clearly not the problem.
Last week, Tesla CEO Elon Musk claimed that the company has “no demand problem” and that even though Europe is its weakest market, “everyone is struggling in Europe, there’s no exception.”
France has just released its car registration data for May, confirming that the auto market is down 12%. However, Tesla’s sales were down even more than the rest of the market.
Tesla delivered only 721 vehicles in France in May – down 67% compared to the same period last year.
In Q1, Tesla blamed its poor performance on the lack of Model Y availability due to the design changeover, but it doesn’t have this excuse in Q2, which is now tracking below Q1 in Europe.
May was Tesla’s worst month of deliveries it has had in the last three years. It’s also even worse than any month of deliveries in the first quarter, despite the new Model Y now being in full production in Gigafactory Berlin and available in France.
Electrek’s Take
I’ll write a more comprehensive post about Tesla’s sales in Europe once we have data from more countries in May, but it’s not looking good.
Tesla blamed its terrible performance in Q1 on the Model Y changeover, but we are past that in Q2. Yet, April was worse than January, and now, it looks like May is going to be below February in the whole of Europe.
The only positive market so far is Norway, and that’s probably due to some of its large existing base of owners in the country updating to the new Model Y, but it will be interesting to see if it’s sustainable through out the rest of the year. I doubt it. Tesla benefited from the Model Y changeover, but I expect the brand damage will also be felt in the popular EV market.
This result in France in May is particularly interesting because it is even worse than April. I literally have to go back to Q2 2022 to find a quarter when Tesla had a worse second month of a quarter in France.
It is starting to look like demand collapse.
FTC: We use income earning auto affiliate links.More.