Stellantis and Dongfeng Group Seal €1 Billion Deal for Jeep and Peugeot EV Production in China Starting 2027

Stellantis and Dongfeng Group are further deepening their partnership of over three decades. The two companies have signed an agreement to jointly produce Jeep brand off-road new energy vehicles and Peugeot brand new energy models in China starting from 2027, utilizing the facilities of Dongfeng Peugeot Citroën Automobile in Wuhan. The vehicles will be marketed both domestically in China and for export.

According to a joint statement, the total investment for this project exceeds 8 billion yuan (approximately €1 billion), with Stellantis contributing an estimated €130 million. The production plan includes two Jeep off-road new energy vehicle models and two Peugeot new energy models.

This move signifies the formal integration of the Jeep brand into the Dongfeng Peugeot Citroën Automobile production system and represents a significant revival of the joint venture collaboration after several years of relative inactivity.

The relationship between Stellantis and Dongfeng dates back to the early 1990s when PSA Peugeot Citroën, a predecessor of Stellantis, formed an alliance with Dongfeng to establish the joint venture Dongfeng Peugeot Citroën Automobile, aiming to enter the rapidly growing Chinese market. However, in recent years, facing intensified competition in China, both sales and production have seen a substantial decline.

To reverse this trend, Stellantis is accelerating its efforts to leverage the technological and supply chain advantages of its Chinese partners. Last month, Stellantis confirmed plans to utilize Dongfeng's technology for producing Peugeot-branded vehicles in China. During the Beijing International Automotive Exhibition in April, the Peugeot brand also unveiled two new concept cars, signaling the Franco-Italian automotive giant's renewed push into the world's largest automotive market after years of weak sales and business restructuring.

On the day of the signing, the parties also inked a memorandum of understanding aimed at further strengthening their cooperation. Concurrently, Stellantis is comprehensively advancing deeper ties with Chinese automakers, having recently announced a collaboration with Zhejiang Leapmotor Technology to produce two vehicle models in Spain.