By Jiahui Huang
Stellantis has struck another deal with a Chinese automaker, this time partnering with Dongfeng Group to produce electric vehicles under the Peugeot and Jeep brands in China.
The $1.17 billion tie-up underscores a broader shift in the global auto industry that is driving deeper collaboration between Western carmakers and their Chinese counterparts.
Under the arrangement, Stellantis will co-manufacture two all-new Peugeot new energy vehicles with Dongfeng at their joint-venture factory in Wuhan, China. They also plan to produce two Jeep NEVs--a a category that includes fully electric variants and plug-in hybrids.
The companies, which have worked together for over three decades, said the project comprises an investment of about 1 billion euros, equivalent to $1.17 billion. Stellantis will contribute around 130 million euros.
Production of the China-made Peugeot and Jeep vehicles is set to start from 2027, and the models will be sold both in the domestic market and overseas.
Chinese carmakers' advances in EVs--across batteries, driving technology and in-car features--has spurred a quiet pivot among Western auto brands to partner more with local firms, rather than trying to directly compete with them.
Stellantis was among the first major Western automakers to embrace Chinese companies' experience and technology.
Last week, it announced plans to deepen its partnership with another Chinese EV maker, Leapmotor, including by manufacturing cars in Spain. That marks the first time a major Western carmaker has offered European manufacturing capacity to a Chinese brand.
Stellantis holds a 21% stake in Leapmotor that it acquired in 2023, and has a joint venture with the Hangzhou, Zhejiang-based company.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
May 15, 2026 02:55 ET (06:55 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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