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Stellantis and its longstanding partner in China, Dongfeng Motor Group, have signed a deal worth 8 billion Chinese Yuan (approximately $1.2 billion) to localize the production of electric vehicles for the Peugeot and Jeep brands. This initiative aims to boost sales performance for these brands within the Chinese market.
The joint venture between Dongfeng and Stellantis, known as Dongfeng Peugeot Citroën Automobile, plans to begin manufacturing two new Peugeot and two new Jeep off-road electric models starting next year at its facility in Wuhan. These electric vehicles will be marketed both domestically and internationally.
Stellantis is expected to allocate around 130 million euros (roughly $151.4 million) towards this project, which will benefit from supportive industrial policies in Hubei Province and Wuhan, the provincial capital.
“Building on more than 30 years of collaboration and shared automotive knowledge, Stellantis and Dongfeng Motor are positioned to further leverage their strengths to introduce completely new vehicles equipped with the latest EV technologies from brands trusted and appreciated worldwide,” said the company’s CEO.
Dongfeng Motor’s Chairman emphasized that revitalizing and transforming Dongfeng Peugeot Citroën Automobile remains a strategic priority, with full support for its sustainable development.
Through this strategic partnership, combining Hubei’s industrial capabilities, Stellantis’ global operational advantages, and Dongfeng’s advanced electric vehicle technologies, a new path of mutually beneficial collaboration has been established. This initiative is expected to energize the joint venture’s ongoing transformation.
In recent years, Stellantis’ operations in China have encountered challenges as local competitors have quickly gained ground. Last year, the sole remaining joint venture, Dongfeng Peugeot Citroën, sold only 51,507 vehicles—a 25% decrease from the previous year and a drop of over 90% from its peak sales a decade ago.
Another of Stellantis’ Chinese joint ventures, GAC Fiat Chrysler, filed for bankruptcy and ceased operations in 2022. The production of Jeep vehicles through this partnership was halted, with the brand shifting to an import model within the country.
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