Volkswagen and Xpeng reached a technical framework agreement, Audi signed a memorandum of understanding with SAIC, and Leapmotor announced a partnership with Stellantis Group. Of the three collaborations that have attracted much attention in the past short period of time, Leaprun was the latest to be officially announced, but it took only 25 days from the signing of the strategic cooperation agreement to the completion of the delivery. The completion of the delivery in 25 days is the fastest delivery speed in the history of the entire automotive industry, and it is also the most important work of Leapmotor this year. Previously, foreign companies set up joint ventures in ChinaToday, the new model of Sino-foreign cooperation has made the entire Chinese automotive industry boiling. Technology output will become a major trendWho will be the next ZeroRun?In this regard, Wu Qiang, co-president of Leapmotor, has a different view. In his opinion, the cooperation between Leapmotor and Stellantis will not become a trend, and there should be no precedent trend for other car manufacturers in the future. Wu Qiang said that this is because each company's situation is different, and the cooperation is based on the business development needs of both parties, and strive to achieve a win-win situation, so it is difficult to say what trend can be formed. 
Collaboration just for financing?As Wu Qiang said, each company is different. Volkswagen and Xpeng and Audi and SAIC will jointly develop electric intelligent connected vehicles for the Chinese market, while the main battlefield of cooperation between Leapmotor and Stellantis is overseas. The direction of cooperation is different, and the form is also different. Leapmotor and Stellantis Group will form a 49:51 joint venture called Leapmotor International, with the CEO of the joint venture appointed by Stellantis Group. Except for Greater China, Leapmotor International has the exclusive right to export and sell to all other markets around the world, as well as the exclusive right to manufacture Leapmotor products locally. For the significance of Leap International, we will expand on it later in the article. As early as February this year, Leaprun began to have in-depth exchanges with several potential partners, and the reason why he finally chose Stellantis, Wu Qiang said: "It is not only its inevitability, but also the high degree of compatibility between our two sides in terms of philosophy, company culture and cost control. In addition to the strategic cooperation, Leaprun will also receive an investment from the Stellantis Group. The special identity of the new car-making force makes "financing" naturally associated with the survival of enterprises. Therefore, this hand-holding is also easy to be interpreted by the outside world as "zero run and no money". 
In the face of doubts, Wu Qiang said bluntly: "I don't melt 8.5 billion, I can also develop, of course, the premise is that I can maintain my sales, my business is advancing steadily, if my business goes downhill, all challenges will follow." However, he also recognized the positive significance of financing, "After this financing, of course, I have more cash reserves, which is more conducive to future development, which is definitely positive." But on the whole, Wu Qiang will not look at the problem from the perspective of how much cash and funds there are, "financing should be done for financing, and business should be done for business". In order to support this, Wu Qiang revealed: "With the development of the business, we expect to achieve positive net profit by the end of 2025 or early 2026." "The cooperation is reached, the transaction is completed, and the two parties will further carry out investment cooperation and the construction of strategic partners. The best solution for going to sea: vehicle exportIn this cooperation, Leaprun and Stellantis Group each take what they need. What does Zerorun want?Wu Qiang said: "I want to sell my products from China to markets outside China, and it is the best input-output ratio, and the best way to do it is relatively fast, which is one of our demands or an idea." At the same time, in order to realize the layout of Leap's first overseas market, Stellantis Group entered the board of directors as a strategic shareholder and invested in it, after all, funds are still very useful for Leaprun's subsequent development. What did the Stellantis Group gain?With its unique vertically integrated system and global in-house R&D and manufacturing capabilities, Stellantis Group will leverage the former's technology-led EV ecosystem to help it achieve its electrification goals in the "Dare Forward 2030" strategic plan. Leapmotor's high-efficiency integrated R&D system and good electric vehicle product portfolio are what Stellantis Group currently lacks. Complement each other's advantages, and the two sides seek mutual benefit and win-win results. 
"Going overseas" has become a trend, or local production, or direct vehicle export. Leap chose the latter. The reason for this is the consideration of "money". "In the end, we will do which is more cost-effective," Wu Qiang pointed out, "At present, the export cost is relatively low, even if we pay 10% tariff, it is a good cost advantage." However, in the future, tariffs will be further raised, and the advantages of local manufacturing may gradually become apparent. "The strength of vehicle exports is Leap's annual production capacity of 700,000 units. Wu Qiang said: "Our production capacity in China is sufficient, that is, our production capacity in Jinhua, including the production capacity of Qiantang under construction, if all in place, can support the sales of 700,000 vehicles." "If the sales volume exceeds 700,000 units in the future, how does Leap plan?There are also plans. Wu Qiang said: "Leapmotor will not form heavy asset investment overseas, will not invest in its own heavy asset investment to build factories, but use other production capacity that has been formed to carry out production OEM, including Stellantis factories, because they have production bases in various countries, and at the same time, it is not excluded that third-party factories will be OEM, and they will be decided by comprehensively comparing their advantages." "Whether it is the cooperation with Stellantis Group or the way of exporting vehicles to the sea, it is the optimal solution after multi-dimensional consideration. 
The first stop at sea: Europe, see you in Q3 next yearThe goal of going overseas has been set, starting from the European market, and deliveries will begin in the third quarter of 2024. Expanding into overseas markets is not an easy task, especially when taking the first step. Wu Qiang pointed out: "This is the challenge, not to say that we can occupy the Chinese electric vehicles that are full of land, we see that this is not the scene at all, we see the market challenges brought about by the characteristics of different cultures, politics, regions and consumers." "In the European market, automobiles have a deep heritage market, and the acceptance of electric vehicles is relatively high, but at the time of the EU's anti-subsidy investigation of China's electric vehicles, there are many challenges, and at this time, Leapmotor International will play a role. Leaprun International is Leaprun's overseas sales platform, located in the Netherlands, with Stellantis Group accounting for 51% and Leaprun accounting for 49%. Leap International's shareholding structure shows two meanings. Wu Qiang further introduced that the first implication is that if overseas protectionism and populism rise, with the Stellantis Group as a 51% shareholder, it should have a certain ability to alleviate or solve such problems. The second implication is that under such a benefit structure, the Stellantis Group will better exert its subjective initiative, mobilize resources, and cooperate sincerely to sell the car overseas, or sell it as soon as possible. 
The Stellantis Group has multiple brands, how can it guarantee the sales of Leapmotor?Wu Qiang gave an explanation.
First of all, it is still the Leap International just mentioned, the cars sold overseas by Leap are all through the channel of this joint venture company, and if the cars sell well, Stellantis Group will have financial benefits. Secondly, Leapmotor's models are not direct and unhealthy competition for the group, but a useful supplement, which will drive the group's brands to further develop more competitive products, so as to achieve a good balance. Moreover, the premise of cooperation between the two sides is sales, and if sales cannot be increased, the cooperation is not very successful in a sense. In addition to the empowerment of Stellantis Group, Leaprun will also use its accumulated experience in the Chinese market to serve as a reference for overseas sales. ConclusionIn terms of business model, Leapmotor pursues the iron bucket model, has no major shortcomings, and seeks a balance in domestic and foreign business, products, sales, and cash control. Regarding this cooperation, Wu Qiang repeatedly emphasized: "We have built a ladder of engineering, and the ladder of engineering is to climb up, not down." Facing the future, he said that the two sides will develop their business according to their actual situation. If the cooperation between Leaprun and Stellantis Group is compared to a long march, then the completion of the transaction means that the first step has been taken, and the real work, heavy work, will be carried out in the following time.