We have released a joint announcement with Stellantis Group, which is an unprecedented and very in-depth cooperation in the automotive industry. It will bring huge opportunities for our future development, and also serve as a proof of the technological strength and product strength brought by Zero Run's long-term commitment to self research and technological innovation. "On October 26th, at the press conference on strategic cooperation between Stellantis Group and Zero Run Technology, the founder of Zero Run Technology Chairman and CEO Zhu Jiangming said.
A reporter from China Business Daily learned that Zero Motor announced on the 26th that Stellantis Group plans to invest approximately 1.5 billion euros (approximately 11.6 billion yuan) to acquire about 20% of Zero Motor's equity, which will make Stellantis Group an important shareholder of Zero Motor. This transaction also confirms that Stellantis Group and Leapmotor International will form a joint venture called "Leapmotor International" with a ratio of 51% and 49%, respectively. Except for the Greater China region, the joint venture company has the exclusive right to export and sell to all other markets worldwide, as well as the exclusive right to manufacture Zero Run automotive products locally.
It is reported that the establishment of a global partnership between Stellantis Group and Zero Run Automobile will be the industry's first, where a world leading automaker has collaborated with a new power electric vehicle company from China on global electric vehicle projects.
At the press conference on strategic cooperation between the two sides, Carlos Tavares, the global CEO of Stellantis Group, couldn't conceal his excitement and called this a very important moment. We believe that our collaboration is a very important way to ensure smooth and coordinated cooperation between both parties, and we can see a very bright future
It is worth mentioning that Stellantis Group plans to invest approximately 1.5 billion euros to acquire approximately 20% of the equity of Zero Motor, including all 7.88% of Zero Motor held by Dahua Group. Its 90 million shares are planned to be transferred to Stellantis Group for HKD 3.492 billion. After the completion of this transfer, Dahua Shares will no longer hold shares in Zero Run Automobile.
According to the announcement released by Dahua Group on October 26th, this withdrawal is expected to increase the company's current profit by approximately 4.548 billion yuan (before tax), accounting for 195.7% of the audited net profit attributable to shareholders of the listed company in 2022.
Heavy cooperation between Chinese and foreign car companies has come to an end
Prior to the official announcement of the cooperation between Stellantis Group and Zero Run Automobile, there were rumors in the industry that both parties were interested in collaborating, but Zero Run Automobile has never had a clear response to the outside world. The day before the official announcement, the reporter sought confirmation from Zero Run and received a response of "no comment".
Stellantis Group is not the only company rumored to have a partnership with Zero Run Motors. Why did Zero Run ultimately choose Stellantis Group? Zhu Jiangming candidly said, "This year we have also met with many global car companies and had a lot of communication. The biggest reason we chose Stellantis is twofold. The first is that the cultures of the two companies are very compatible, both of which are relatively frugal, emphasizing simplicity and efficiency, focusing on product technology, and creating maximum value for users. The values are quite consistent
The second is complementarity. Zhu Jiangming bluntly stated: Currently, 98% to 99% of Zero Run's sales are in China. To expand into the global market, it is necessary to have a good partner. Stellantis has done very well in other fields around the world, including efficiency, products, services, sales and service networks. We have also conducted research in Italy and France, and it is indeed very efficient and has cost control advantages. In addition, Zero Run is a technology oriented company, and we are Fully self-developed, 70% of the core components in a car are self-developed and manufactured by oneself. If we cooperate in the future, the imaginable development space will be very large, so both parties complement each other, including the market and products. These two aspects are very complementary, and can be 1+1> 2. Mutual can generate greater value
In Zhu Jiangming's view, after so many years of development, Chinese car companies have achieved good results domestically, but globalization has only just begun. The automotive industry is different from traditional industries in that it can fully export products. The automotive industry is considered a pillar industry in many countries, and only through cooperation can it go global, and Chinese cars can go global
Why is Stellantis Group interested in Zero Run cars? Tang Weishi bluntly said, "We have done a lot of research work before. Zero Run has a very unique product portfolio, they are very focused on technology, and are very passionate. They are very efficient in both the basic financial and corporate governance aspects. Their thinking is very flexible in understanding the global market
From a zero run perspective, they have a strong willingness to improve profitability and expand globally, "Tang Weishi admitted." Stellantis Group also needs to have a certain level of exposure in the Chinese market. We are not very successful in the Chinese market at present, so we are very inclined to rely on a successful Chinese company, which is one of our intentions
Tang Weishi added, "Zero Run ranks fourth in this industry, and we hope to help them develop and promote their development in China and overseas. For us, this is the deepening of the world's largest market and can also be helpful. If we want to win the Chinese market, we had better first win over a good company in China, which is our logic
Behind 'holding hands', each takes what they need
Our cooperation with Stellantis is more based on their 'multi brand' business philosophy, utilizing all channel resources such as finance, insurance, services, and other mature networks. "Zhu Jiangming said," 14 brands plus one Zero Run brand can provide better services for users of Zero Run brand products, and quickly seize the market, allowing the brand to develop globally
It is reported that Stellantis Group was formed by the merger of two former Peugeot Citroen Group and former Fiat Chrysler Group, each with over a century of history. Stellantis Group currently owns 14 iconic car brands such as Maserati and 2 mobile travel service units. At present, the group's customers are located in more than 130 countries around the world and carry out production and manufacturing operations in more than 30 countries.
We have 20% market share in Europe, 26% market share in North America, 26% market share in Latin America, and 15% market share in the Middle East. We are a global group that is very diverse, "Tang Weishi said.
Zero Run can use Stellantis as a platform to accelerate sales overseas, which is the most obvious value for Zero Run. Tang Weishi said, "Stellantis can use its overseas layout to help Zero Run establish more distribution networks and marketing measures overseas, thereby accelerating Zero Run's overseas layout. This is the first. The second is scale
Tang Weishi further stated, "Our company has a sales volume of 7 million vehicles, which can bring economies of scale and turn into better competitiveness, making consumers more able to bear their prices. Both Chinese and overseas customers can receive better price to product ratios, and through economies of scale, we can bring a product with a high price to end customers
Regarding the value that Stellantis can gain from cooperation, Zhu Jiangming stated that Stellantis can gain greater scale advantages in service, finance, sales network, and other areas by adding zero running brands to its existing 14 brands outside of China.
The reporter noticed that over the next decade, Stellantis Group will invest over 50 billion euros in the electrification field to achieve its electrification goal in the "Dare Forward 2030" strategic plan: by 2030, all passenger cars sold by the group in Europe will be pure electric vehicles, and 50% of passenger cars and light trucks sold in the United States will be pure electric vehicles.
From a technical perspective, Zero Run cars are bound to empower Stellantis' electrification process. Zero Run Automobile is the world's first new energy vehicle company to adopt CTC battery chassis integration technology on mass-produced models. This year, the "Four Leaf Grass" centralized electronic and electrical architecture has achieved seamless and efficient collaboration between core components of intelligent electric vehicles.
Tang Weishi stated that the industries in which both parties are located are unpredictable, so the speed of development is particularly important. Only with the development of new technology and the acceleration of the development of new systems and software can one become a leader in the industry. Both companies attach great importance to technology
Zero International Acceleration
For this cooperation, both parties believe that the electric vehicle products of Zero Run Automobile complement the existing technology and brand product portfolio of Stellantis Group, and they will bring more cost-effective travel solutions to global customers. Stellantis Group will hold two seats on the board of directors of Zero Runner Motors and appoint the CEO of the joint venture company "Zero Runner International".
When it comes to the fund utilization arrangement of Stellantis Group's investment, Zhu Jiangming bluntly said, "Since its establishment in 2015, our fund utilization efficiency has been the highest. We have released so many products and conducted so much research and development. Compared to the top few new car manufacturers, we use the least cash and have the least financing amount so far. We focus on fund utilization efficiency
Zhu Jiangming stated that after the future funds enter, he hopes to invest more resources in intelligent driving and potential technology research and development in the future. At the same time, we will also invest more resources in domestic network expansion and global market expansion
The reporter learned that the joint venture company "Zero Run International" is expected to start its export business in the second half of 2024. According to Zhu Jiangming, in the future, the joint venture company will sell the Zero Run brand, and in the early stage, Zero Run has also made many global layouts. The products of Zero Run Future are all global models that meet global standards, including those of the European Union. Some regions will develop more products in the future, and all products developed in the future will be designed and planned according to global standards and needs
At this year's Munich Auto Show, Zero Run fully showcased the latest self developed LEAP3.0 architecture and the first global model C10. At the same time, with the arrival of the first global product C10, Zero Run's subsequent products will be built with global design concepts and global research and development standards. In the next two years, five global products will be sold simultaneously in Europe, Asia Pacific, the Middle East, and the Americas.
When it comes to whether car models will be manufactured in Europe, Zhu Jiangming bluntly stated: With the increase in the export of Zero Run products and the increase in volume, we will also utilize Stellantis' overseas manufacturing resources. Automobile manufacturing requires scale, construction takes a very long time, and there are also great risks. Our cooperation is fast and efficient. For example, after a certain market sales increase, we can rely on Stellantis' global manufacturing factories to produce Zero Run brand products, which is an advantageous cooperation compared to other competitors in the future Mode
Regarding the product planning of the joint venture company "Zero Run International," Tang Weishi stated, "Zero Run Technology has its own executive committee and goals. They independently decide their products, technology, and market they want to enter. We will provide infrastructure support and platform support to help Zero Run Technology enter new markets more effectively and quickly
Cooperation and mutual trust are very important. Only on the basis of mutual trust can we truly cooperate. Regarding the overseas market, they do have a better foundation than us, and various networks and existing resources can provide better services. Therefore, the overseas market relies on Stellantis to cooperate with us, and I believe we will definitely go faster. "Zhu Jiangming said.