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Can Leapmotor save Stellantis in the shift to electric vehicles?

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In a tough automotive industry, Stellantis is facing challenges. As we recently reported, the company’s profits fell 70% in 2024, and its outspoken CEO Carlos Tavares quit at the end of the year. 

Although many traditional automakers have found the shift to electrification disruptive, Stellantis seems to have particularly struggled to negotiate the new market. Now there’s yet another brand being added to its huge portfolio that promises more electric options, but it’s a bit different from the rest. Could Leapmotor be the Stellantis marque that turns the multinational behemoth’s fortunes around? 

Leapmotor joins the other 14 members of the Stellantis group (although only eight are active in Europe). The Stellantis name was born when PSA Group (which combined Peugeot, Citroen, Vauxhall/Opel, and DS) merged with Fiat Chrysler Automobiles (Abarth, Alfa Romeo, Fiat, Lancia, Chrysler, Dodge, Jeep and Ram). But all these brands are fully owned by Stellantis. Leapmotor is a Chinese company, which has been operating in its home country since 2015. Stellantis purchased 20% of the business in China in 2023, but now also owns 51% of the Leapmotor International wing that was launched in Europe in 2024 to bring the brand to a global market.

Why Leapmotor?

From one perspective, it’s valid to ask why Stellantis needs yet another brand. But Leapmotor potentially plugs a gap like nothing else in its portfolio. When the current battery-electric (BEV) transition started around 2020, Stellantis appeared to have mostly one drivetrain on offer. This combined a 136hp motor driving a vehicle’s front wheels with a 50kWh battery. It appeared in everything from compact hatchbacks like the Peugeot e-208 all the way up to sizeable vans like the Citroen e-Dispatch (although some vans did offer larger batteries).

From one perspective, it’s valid to ask why Stellantis needs yet another brand. But Leapmotor potentially plugs a gap like nothing else in its portfolio.

The results weren’t terrible, and neither were the prices (by BEV standards), but they were platforms shared with internal combustion engine (ICE) versions. This meant they missed out on some of the benefits from design innovations that pure-BEV platforms make possible, such as larger under-floor batteries for lots of range, dual-motor performance, and increased interior space.

More recently, the company has developed more advanced EV drivetrains, such as STLA Small and Medium. These have been presented as being intended specifically for BEVs, but they do still support ICE. They are more “BEV first” than pure BEV, but that is still a considerable improvement over the compromised prior platforms. This has allowed new models like the Peugeot e-3008 to offer more competitive features than previous Stellantis EVs, such as much larger batteries capable of over 400 miles of range. The technology stack also feels much more seamlessly integrated into the car.

However, the vehicles built on these new Stellantis platforms still exhibit a continuing problem for most European carmakers – they remain relatively expensive. That’s not a disaster when most automakers have the same issue with BEV pricing. But now that Korean and Chinese brands are starting to offer strong competition in Europe, the EV market is becoming increasingly cramped and price-sensitive, making it hard to stand out. For example, Chinese automaker BYD is posing a considerable challenge, and in the U.K. MG has been expanding electric possibilities.

Stellantis’ incumbent advantage

However, while challenger brands can tempt with very compelling pricing, they often lack the support network to continue the good experience after sales. What Stellantis is hoping is that there is a powerful synergy between what it has to offer as a traditional incumbent automaker–a well-established network of dealerships and service centers–and what Chinese brands can provide. These days, that’s not just low costs, but also advanced technology. The Leapmotor cars arriving in Europe boast innovative BEV features, and they have plenty of leading-edge safety tech built in as standard too.

However, price is still a key feature of the Leapmotor offering. The most market-challenging model among the first two launched in Europe is the T03, a small four-door hatchback. The T03 is arriving in Britain at £15,995 ($20,500). By EV standards that’s a bargain. The Dacia Spring starts at £14,995 ($19,500), but that’s without an infotainment screen, which the T03 has as standard. The Spring also has a smaller battery (meaning less range) and a less powerful motor. Leapmotor aims to match the Spring on price but surpass on EV features and quality.

The story is similar with the other car Leapmotor has launched in Europe so far – the C10. At first glance, this looks a lot more “me too” than the T03. It’s a mid-sized electric SUV costing £36,500 ($47,000), and there are a lot of competitors from other brands around this price. However, Leapmotor only offers one premium-grade trim level for the C10, like the T03, with features like a panoramic sunroof, a heat-pump (improving winter range), heated and ventilated front seats, and a kick-to-open tailgate as standard. Other brands charge a lot more once you add these kinds of luxuries. The C10 has initially been launched as a BEV with 263 miles of WLTP range, but a “serial hybrid” is also imminent.

Bracing for the Chinese automotive invasion

The Leapmotor venture isn’t just an excuse for Stellantis to import cheap cars made in China, however. The cheapest model, the T03, is made in Tychy in Poland, so should be resistant to the global trade war that is evolving daily. The C10 is imported from China, but the next model to be released, the B10, will be built in Slovakia and Germany. Three more models will be introduced by the end of 2027. Leapmotor aims to continue its ethos of offering premium features for keen prices with these launches.

There is an increasing array of quality Chinese or Chinese-owned EV brands entering the European market, including XPENG and Geely-owned marques ZEEKR and Lynk & Co. Geely is also the force behind Swedish Volvo and Polestar. Changan (which has Ford and Mazda joint ventures) is another Chinese brand just about to enter Europe. The challenges for European automakers are only set to increase.

Even though tariffs might temporarily protect European brands at home, they can’t make them competitive on the global market against the Chinese. Stellantis appears to have adopted a policy more of “if you can’t beat them, join them” with its Leapmotor International strategy. The prices are competitive but for a more premium specification than alternatives, giving the cars a potential edge. This might not be enough to reverse the 70% fall in profits from 2024 entirely, but it could certainly help keep Stellantis in the game as Europe increasingly electrifies.

This story was originally featured on Fortune.com



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DOGE is flirting with the ‘third rail’ of American politics — errors could delay or disrupt benefits, a former top Social Security official says

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  • The Social Security Administration is laying off 12% of its workforce, and the loss of expertise, especially on key systems, could put benefits at risk as DOGE tries to look for fraud, according to a former staffer at the agency. 

Historically, toying with Social Security benefits has been long seen as a political “third rail,” meaning whoever touches it will get zapped.

The White House said in a press release it won’t cut Social Security, Medicare, or Medicaid benefits, but that doesn’t rule out the chances of a mistake. 

Amid the Department of Government Efficiency’s cost-cutting endeavor within federal agencies in recent weeks, a former top Social Security Administration staffer is worried about benefit interruptions as the agency loses expertise while DOGE looks for fraud in its systems.

In February, the SSA released a statement announcing plans to lay off roughly 12% of its 57,000 employees through voluntary resignation and a reduction-in-force plan. Meanwhile, President Donald Trump and world’s richest man Elon Musk, the figurehead for DOGE, have claimed fraud on a massive scale, though experts have said it’s limited. 

Still, DOGE is looking for evidence and seeks full access to the SSA’s Enterprise Data Warehouse (EDW), which houses information about anyone with a Social Security number, including financial and banking information, according to a declaration filed in a lawsuit last week by former senior official Tiffany Flick. 

She said that SSA typically doesn’t provide full access to all data systems—even to the most skilled and highly trained experts—to protect against inadvertent or unauthorized changes to the system. 

Flick said DOGE officials lacked interest in understanding SSA’s systems and programs, while disregarding critical processes like providing the “least privileged” access on a need-to-know basis.

“That combined with a significant loss of expertise as more and more agency personnel leave, have me seriously concerned that SSA programs will continue to function and operate without disruption,” she said.

Flick said that inadvertent error poses the risk of “benefits payments not being paid out or delays in payments.”

The SSA information technology programs are made up of complex systems that use old programming languages that require specialized knowledge, she warned, adding that they are easily broken if long-standing procedures aren’t followed.

“I understand that DOGE associates have been seeking access to the ‘source code’ to SSA systems,” Flick wrote. “If granted, I am not confident that such associates have the requisite understanding of SSA to avoid critical errors that could upend SSA systems.”

In addition to her concerns regarding benefits, Flick is not convinced DOGE has the proper experience to prevent sensitive information from getting into the hands of bad actors. 

“In such a chaotic environment, the risk of data leaking into the wrong hands is significant,” she said.

Andrew Biggs, an American Enterprise Institute senior fellow, told Axios the agency could increase productivity and efficiency, but he doubts DOGE’s ability to do so due to its lack of experience.

“I just find it hard to accept that you can go in there having been there just a few weeks, and do these far-reaching changes having fully thought out the consequences of them,” he said.

Biggs says while checks are automated and won’t be disrupted, possible disruptions to customer service bring concerns regarding budget cuts.  

“It’s kind of a foot race between whether they can improve service before these cuts are impacting service,” Biggs said. 

The White House, the U.S. DOGE Service, and the SSA did not respond to Fortune’s request for comment.

This story was originally featured on Fortune.com



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Trump claims tariffs will make the U.S. ‘rich again.’ But 5 undisputed facts about how they work undermine that idea

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The leader of a major government union outlines their strategy to battle Trump federal cuts—And says Elon Musk has ‘no clue’ about workers

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The second Trump administration has been characterized in large part by a focused effort to cut down the number of federal employees. 

Through the Office of Personnel Management and Elon Musk’s Department of Government Efficiency, the president has used highly unusual resignation offers and layoffs to shrink the workforce across agencies including the Department of Education and the Department of Veterans Affairs. There’s no official number on how many people have been laid off, but 62,530 government positions have been cut so far this year, according to data published earlier this month from global outplacement firm Challenger, Gray, & Christmas. There are likely more cuts to come. 

Unions have played a major role in legal challenges to the mass firing of federal workers. On Thursday, two separate rulings came down ordering the Trump administration to reinstate these terminated employees. One ruling in response to 20 Democrat attorneys general calling for the reinstatement of fired workers came from a federal judge in Maryland. The other was issued by a judge in the U.S. District Court for the Northern District of California in response to a case brought by dozens of labor unions and advocacy groups. U.S. District Judge William Alsup ordered that six federal agencies reinstate thousands of probationary employees that were fired under the guidance of OPM, a move he declared illegal. The Trump administration has already filed an appeal in that case. 

The American Federation of State, County, and Municipal Employees (AFSCME) was one of the plaintiffs in that second challenge. The union represents 1.4 million public service workers across the country in federal, state, and local government, as well as the nonprofit sector. AFSCME’s president, Lee Saunders, spoke with Fortune about the threat that public sector workers are under, what his members are feeling, and how the union plans to fight back. 

This interview has been edited and condensed for clarity.

Fortune: What are AFSCME members feeling right now? 

President Saunders: They’re feeling under attack. They believe in the importance of public services, and yet you see them being attacked every single day by this current administration. 

They’re frightened, but they also know that they’ve got to make their voices heard and they’ve got to fight back, and that’s exactly what they’re doing. Their union is supporting them 100% by talking about the importance of public service, and challenging some of the things that this administration is doing, and whether it’s in the courts, or whether it’s in the media, or whether it’s on the streets. We’re going to continue to do that to make our point and get our point across.

AFSCME is one of the plaintiffs in the case which was just ruled in favor of reinstating fired probationary federal workers. Many are seeing this as a win for federal workers, but that ruling does not affect this week’s deadline set by the Trump administration requiring all agencies to send the president and the OPM plans for more layoffs. What could the future look like for these workers? 

This is a huge victory for these workers.

It will be challenged, but we’re going to continue to put the full force of the union behind filing these kinds of lawsuits. That’s really important, but we’ve also got to go on offense and not play defense all the time, and we’re going to continue to do that. What we’re doing right now is organizing and mobilizing and educating our members across the country by having phone calls, by going to town hall meetings.

One of the things that we’ve got to do is continue to organize. Seventy percent of Americans believe that unions are absolutely necessary in this country and 88% of young people [view them favorably]. We’re going to spend resources, and we’re going to be talking to workers, asking them to be represented by us or other unions so they have a seat at the table. 

It feels like every day there is a new development related to the DOGE layoffs. How would you advise people to keep track of the whirlwind of actions?

I think it’s up to AFSCME and the labor movement and our allies and friends to continue to talk about what this administration is trying to do to hurt working people. We’ve got to enlist people within the labor movement and outside the labor movement to make their voices heard. We cannot just sit idly by and be silent when this destruction—and that’s exactly what this is—is taking place at the federal level, [which will] roll down to the state and local level, with possible huge cuts in federal programs. State governments rely on federal money to fund programs at the state level; they get about 33% of [their revenue] from the federal government. That helps provide public services at the state, city, and local level. 

It’s all about continuing to educate. It’s all about asking [workers] to not be silent, but to make their voices heard and to fight back like never before. 

[When asked for comment, a spokesperson for the White House told Fortune: “President Trump returned to Washington with a mandate from the American people to bring about unprecedented change in our federal government to uproot waste, fraud, and abuse.”]

Elon Musk reposted a Tweet implying that public sector workers were responsible for mass murders under people like Hitler, Mao and Stalin. What do you make of this comment, and the attacks on public sector workers generally?

I will try to control my language, but… it is a hateful comment for him to [retweet] that and compare our public sector workers and our members saying that “Hitler, Stalin and Mao didn’t murder millions, but [their] public sector service workers did.” Now just think about that. That’s where he’s coming from, and we’ve got to get that message out. 

He has no clue what workers are faced with every single day. He has no clue what they do to improve the lives of our citizens in our communities across the country and to improve upon public services, yet he makes a statement like that. I mean, it is unbelievable, and we’ve got to make sure that people understand that this is what he is saying, and this is what folks in this administration believe.

[Fortune reached out to Elon Musk but did not get a response.]

How can unions protect workers if the government wants to fire them?

We’re filing these lawsuits—that’s number one. We are pushing even though we understand that the climate here in Washington, D.C. is not the best. But we’ve still got to continue to go on the offense, as I said earlier. We are supporting the PRO Act, which would give workers the right to have a seat at the table to improve labor labor law in this country. We’re doing the same thing with the Public Freedom to Negotiate Act for public service workers.

We have the ability to mobilize every single day—to mobilize union members, but also workers who aren’t in unions in our communities across the country. Because this is impacting them too. The actions that are being proposed have an impact on everyone that relies upon public services: Medicaid, Medicare, Social Security. All of these programs are under attack, and we’ve got to do what we do best, and that’s exactly what we are doing.

This narrative against public sector workers has come on quickly and strongly. How do you combat the sentiments coming from those with huge platforms like Trump and Musk?

It’s not only federal workers. It really is all workers. There’s an attack on all workers right now. I guess the way that I can answer that question is that reality is now hitting people in the face. I mean, they’re feeling it. People are being laid off indiscriminately. People are being fired. Their rights are being taken away from them. Services that the American people relied upon are being cut, and they’re proposing to do a lot more damage. So I mean, here’s the playbook that they talked about, and now they’re putting in an action, and we’ve got to make sure that people understand the impact that it’s going to have on them and their families. You’ve got to react to it in a way where we ask people to fight back and to make their voices heard. You cannot sit by silently and watch this happen.

This story was originally featured on Fortune.com



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