Eager to avoid falling behind in the global shift to electrification, Stellantis invested $1.6 billion in Leapmotor in 2023, acquiring a 21% stake in the Chinese EV maker. The deal gives Stellantis the right to sell Leapmotor vehicles across Europe. But despite the early promise, the partnership has already hit its first significant roadblock.

A Stellantis plant in Tychy, Poland, had been building the small T03 electric car for the European market, but local production of this model suddenly ended on March 30. Stellantis has not said why this happened, but unnamed sources say there are no plans to resume T03 production in Europe.

Read: New Leapmotor B10 Goes After Europe’s EV Market With Stellantis In Its Corner

That’s bad news for Stellantis, as it was only in November last year that it scrapped its plans to build a second Leapmotor EV at the same Polish factory. Meanwhile, Leapmotor vehicles shipped from China are still facing a 21 percent tariff in the EU.

Politics, Tariffs, and Sudden Shifts

It’s hard not to connect the dots between this decision and China’s response to EU trade policies. Back in October, the Chinese government told its automakers to pause major overseas investments in countries that backed the EU’s new tariffs on Chinese-made EVs. Poland was among the ten countries that voted in favor of those tariffs. Another 12 EU members abstained, and five—Germany included—voted against them, according to Reuters .

Given the timing, it seems plausible that Leapmotor’s retreat from Poland was at least partly driven by political pressure from Beijing. The optics alone suggest as much.

Stellantis Still in the Game

Despite the halted production, Stellantis insists it’s not backing away from its Leapmotorinvestment. Through its joint venture with the Chinese company, Stellantis holds a controlling 51% stake, giving it exclusive rights to manufacture, sell, and export Leapmotor EVs beyond China’s borders.

“While the company remains fully engaged in the launch of Leapmotor vehicles in Europe, at the moment it is evaluating different production options,” Stellantis said in a recent statement.

And those options may now include Spain. According to German outlet Handelsblatt, Spain’s decision to abstain from the EU tariff vote could make it a more politically viable location for future production. The publication reports it may become the new manufacturing home of Leapmotor’s upcoming B10 electric crossover.