Stellantis teams up with Ikea-style Luvly to fight Chinese low-cost

Stellantis is partnering with Swedish startup Luvly to explore its innovative flat-pack vehicle production method. This method could dramatically reduce manufacturing and transportation costs and prove a worthwhile Western alternative to Chinese low-cost production. 

With the Citroën Ami and its siblings at Opel (Rock-e) and Fiat (Topolino), Stellantis has already explored the market for microcars. However, the automotive giant wants to grow its interests in the field and has spotted Luvly’s modular vehicle construction to improve the business model.

Packed like Ikea-furniture

Luvly is short for “Light Urban Vehicle” and sounds lovely. The Swedish startup has developed a lightweight chassis system using composite panels and aluminum connectors. The system allows for simple assembly and could be adapted to various electric vehicles, from two-seaters to small pickups. 

But what has caught Stellantis’ attention in particular is Luvly’s ability to flat-pack its vehicles. It sounds like Ikea furniture, and the method is very comparable. The significant benefit is much lower shipping expenses.

According to Luvly CEO Håkan Lutz, the company’s prototype, the O quadricycle, can be dismantled into pieces so that 250 unassembled vehicle bodies can be packed into a single 6-meter-long standard container—compared to just 20 fully assembled models. For a large-scale auto giant like Stellantis, that’s music to their ears. 

It might not apply to any model in any range, but it’s a tantalizing solution for a no-frills city car. Not in the least, this method also slashes emissions from logistics. Final assembly is intended to be done by local micro-factories.

Swappable battery

So, for Stellantis, this partnership is a potential gamechanger. If Luvly’s modular construction and flat-pack strategy prove viable, the group could implement the approach across its entire quadricycle lineup, lowering production costs, making ultra-compact EVs even more affordable, and fighting off cheaper assembly from the China region.

The Luvly O, though not yet in production, promises a 100 km range from a swappable 6.4 kWh battery, which can be brought indoors for charging or be refilled at public stations. Top speed is 90 km/h, so highways remain an option. The Luvly O is currently aimed at a price ticker of around €10,000, which isn’t cheaper than Renault’s Mobilize Duo and more expensive than the Citroën Ami (€8,000). But this could change once Stellantis leverages the scale.

Lutz told the website Zag Daily that proving the effectiveness of Luvly’s platform with Stellantis could be a milestone for the entire industry. “This is the first major commercial partnership with a player as pivotal as Stellantis,” he said. “If we manage to prove the level of safety and the economics of our platform and Stellantis chooses to adopt it, that is a major thing—not only for us but for the industry.”

Stellantis will spend the next year evaluating Luvly’s claims and technology. If successful, the collaboration could further materialize and mark a new chapter in how small electric vehicles are designed, built, and delivered to customers.