Madrid switches sides: how a Citroen plant becomes a Chinese-European EV factory

Stellantis is preparing a major move in Europe: the Villaverde plant in Madrid, which currently builds the Citroen C4 and C4 X, may pass under the control of Leapmotor International. This is a joint venture between Stellantis and China’s Leapmotor, with the European-American group holding 51% and the Chinese side 49%. For the Madrid site, this is effectively a lifeline.

The plant’s future was in doubt because the next-generation Citroen C4 is set to be built in Morocco rather than Spain. Under the current plan, the C4 stays on the line until 2029, while the first Leapmotor is due to roll off in the first half of 2028. For a time, the two programmes will run in parallel.

Stellantis is already deepening its cooperation with Leapmotor: it was previously reported that the Figueruelas plant in Zaragoza will get four models from the Chinese brand — the B03, B03X, B05 and B10. The B10 will come first, with launch slated for late 2026. Madrid may now join the same scheme.

The main question is which exact model goes to Villaverde. It could be one of the cars already announced, but another scenario is also on the table. Candidates being mentioned include the compact Leapmotor T03: it was previously assembled in Tychy, Poland, but the project there lost backing amid Poland’s stance on European tariffs against Chinese EVs. In theory, Madrid could end up with the second generation of that model.

Stellantis CEO Antonio Filosa said: «This plan to expand our successful partnership with Leapmotor, a trusted peer and one of the fastest-growing, most respected new energy vehicle producers globally, is a true win-win for both of us. It is expected to support production and advance localization in Europe of world-class electric vehicles at affordable prices to meet real customer needs».

For buyers, this means a simple thing: Chinese EVs will increasingly become a European product by point of assembly rather than an import from China. And if Stellantis can hold the price line, Leapmotor could become one of the most visible players in the affordable EV segment. The Madrid plant, which was at risk of losing its future not long ago, could become Leapmotor’s ticket into the European, African and Middle Eastern markets.