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Vauxhall to make use of Chinese elements for the primary time to cut back EV manufacturing prices

Vauxhall is the latest car maker to use Chinese‑supplied components to reduce production costs for the first time in its history.

The Coventry‑based brand’s forthcoming C‑segment electric SUV will use core components from Chinese manufacturer Leapmotor, including the electric motor and battery technology.

Vauxhall’s parent company, Stellantis, has a 21 per cent stake in the Chinese brand.

The electric SUV is expected to go on sale in 2028, with the partnership enabling Vauxhall to take a major step forward in terms of electrification and scaling.

Opel‑Vauxhall CEO Florian Huettl said: ‘The partnership with Leapmotor should enable a development time of less than two years. With this, Opel‑Vauxhall is planning a further important step in the development of state‑of‑the‑art and accessible electric vehicles for our customers.’

And Vauxhall isn’t the only British or European brand to benefit from partnerships with Chinese car makers. In fact, it joins a long list.

BMW, Mini, Citroen and Dacia are among the manufacturers using Chinese tie‑ups to produce popular models at lower cost, while other European brands, such as Volvo and Lotus, are owned by Chinese powerhouses.

Nissan said this week it will consolidate its two assembly lines at the Sunderland car factory into one as part of its ongoing cost‑saving drive, potentially paving the way for Chinese manufacturer Chery to make use of spare capacity.

Vauxhall will use Chinese parts for the first time in its new electric SUV due in 2028. Vauxhall parent company Stellantis holds a 21% stake in China’s Leapmotor 

Vauxhall’s new all‑electric SUV will serve as Stellantis’ blueprint for ‘efficient global collaboration’.

The SUV will be designed in Rüsselsheim, Germany, and built at the Corsa plant in Zaragoza, Spain.

Although it will feature Leapmotor components, the C‑segment EV will use Vauxhall’s signature design, on‑board experience, chassis engineering, and lighting and seating technology.

As part of the tie‑up, Stellantis – which owns a €1.5billion (£1.3bn) stake in Leapmotor – will give the Chinese company access to its Spanish manufacturing facilities.

Currently, Leapmotor manufactures all of its parts in China, but the new agreement will see some production shift to Europe.

‘With this project, Opel‑Vauxhall would bring together German engineering excellence with global technological innovation speed,’ said Xavier Chéreau, chairman of the Opel‑Vauxhall supervisory board.

‘This innovative spirit defines the next chapter of our global collaboration with Leapmotor, and Opel‑Vauxhall is taking on a pioneering role with this project.

Stellantis, like many European and US brands, has been struggling to compete with Chinese car makers, admitting earlier this year it had lost sight of ‘real‑world’ drivers after demand for its EVs failed to take off. The car giant also took a €22billion (£19bn) hit to its balance sheet.

This move keeps Stellantis in step with other European manufacturers using Chinese partnerships to increase production speed and benefit from cheaper, state‑of‑the‑art components.

BMW’s joint venture with BMW Brilliance Automotive sees the iX3 built for export at BMW’s Shenyang factory in China.

Citroen’s C5 X is produced at Stellantis’ Chengdu factory in China through a joint venture with state‑owned manufacturer Dongfeng.

The ultra‑cheap Dacia Spring EV is assembled at the eGT New Energy Automotive plant in Shiyan, Hubei province, China, as part of a joint venture between Dongfeng, Renault and Nissan.

The Mini Aceman EV is also produced in China under a partnership with Great Wall Motor, which uses its vehicle plant in Zhangjiagang, Jiangsu province.