Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

China's Leapmotor unveils new manufacturing platform, wants others to use it

Published 07/31/2023, 06:16 AM
Updated 08/01/2023, 05:46 AM
© Reuters. FILE PHOTO: Robotic arms assemble cars in the production line for Leapmotor's electric vehicles at a factory in Jinhua, Zhejiang province, China, April 26, 2023. China Daily via REUTERS/File Photo
USD/CNY
-
TSLA
-
VOWG_p
-
XPEV
-

SHANGHAI (Reuters) -Chinese electric vehicle maker Zhejiang Leapmotor Technology unveiled on Monday a new platform it developed in-house for making vehicles, which its chief executive said it wants to license to other automakers.

The "Four Leaf Clover" architecture features an integrated computing platform capable of controlling all intelligent functions including an EV's autonomous driving and smart cockpit functions, Leapmotor's CEO Zhu Jiangming told reporters in Shanghai.

The company hopes to sell the platform to other automakers via tech licensing agreements, he said.

Leapmotor is in advanced talks with two foreign companies about such partnerships, including a new player in the electric vehicle segment, which could produce Leapmotor-developed models in overseas markets, Zhu said without elaborating.

"We hope Leapmotor will not only be an EV brand but also a licensor of core technologies," Zhu said.

Companies in the automotive sector use the terms platform and architecture to describe the basic engineering and design that determines a vehicle’s size, weight and key elements of performance.

A senior Leapmotor engineer told the event the firm had achieved cost savings with the architecture by reducing the use of controls and wire harnesses, and Zhu said this would cut the materials cost per car by 500 yuan ($70).

The company is already planning to launch the platform's next generation in 2025, which would include improvements in computing capabilities and smart cockpits, Zhu said.

Zhu, a veteran electronics engineer who co-founded surveillance giant Dahua, launched Leapmotor in 2015 with the backing of investors including state-owned Shanghai Electric Group Corp and Hongshan, formerly known as Sequoia Capital China.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The company and its fellow Chinese EV startups have been struggling with losses and declining sales since U.S. rival Tesla (NASDAQ:TSLA) started a price war at the beginning of the year.

Leapmotor, which employs more than 2,000 engineers, sold 44,500 units in the first half, 14% fewer than a year ago.

But some young EV manufacturers, thanks to their heavy research and development investment, have been at the forefront of EV technology innovation that appeals to tech-savvy Chinese consumers who like having more intelligent features in cars.

Leapmotor spent 11% of its total revenue on R&D in 2022.

Volkswagen (ETR:VOWG_p) and Xpeng (NYSE:XPEV) announced last week a partnership to jointly develop EVs on Xpeng's G9 "Edward" platform, in a fillip for the Chinese startup that analysts said could boost its sales and profitability.

($1 = 7.1512 Chinese yuan renminbi)

Latest comments

It could be quite beneficial to them if they can pull in a major automaker; they will have acess to all of the telemetry data, ala Tesla, further enhancing their self driving capabilities and it will help pay for the majority of their 2000 engineers on staff.
This is the USA page. Nobody gives a flying...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.