- Stellantis and Dongfeng are investing €1 billion ($1.16B).
- The cash will go towards constructing two Jeep and two Peugeot fashions in China from 2027.
- That includes electrified powertrains, the 4 automobiles might be assembled in Wuhan.
When you can’t beat them, be part of them; that about sums up the state of the automotive business in 2026. China has change into a pressure to be reckoned with, and long-established automakers have definitely taken discover of their rivals’ meteoric rise. Stellantis could have 14 manufacturers beneath its large company umbrella, however it’s counting on Dongfeng to construct a minimum of 4 new fashions for each native consumption and export markets.
Stellantis has inked a brand new cope with Dongfeng to take a position a mixed eight billion Chinese language Yuan (€1 billion or $1.16 billion at present alternate charges). Dongfeng will shoulder the lion’s share of the funding, whereas Stellantis is contributing solely about €130 million ($151 million). The funding will assist carry a number of Jeep and Peugeot fashions to market. Every model will initially obtain two automobiles, beginning in 2027.
All of them are set to be assembled at a plant in Wuhan owned by the Dongfeng Peugeot Citroën Car (DPCA) three way partnership. Sure, that Wuhan. They’ll all be new power automobiles (NEVs), a class that features plug-in hybrids, totally electrical automobiles, and EVs geared up with a combustion engine appearing as a generator to cost the battery pack.
Stellantis stays tight-lipped about different particulars relating to the brand new Jeeps arriving subsequent yr, solely saying they’ll have an off-road focus. On the Peugeot aspect, the 2 fashions might be impressed by the putting wagon and SUV duo unveiled final month on the Beijing Auto Present. The Idea 6 and Idea 8 launched a brand new design language for the Chinese language market, and now we’re studying the recent look is about to go world in 2027.
Though Stellantis is just 5 years previous, the French aspect of the automotive conglomerate has been working with state-owned Dongfeng for the previous 34 years. PSA Peugeot Citroën established the three way partnership with the Chinese language automaker again in 1992. These 4 new automobiles are solely a part of the story, as the businesses have additionally signed a non-binding strategic memorandum of understanding (MoU) to additional deepen their ties.
Final month, a Bloomberg report alleged that Stellantis might enable Dongfeng to construct automobiles in Europe at a few of its underused factories. Individuals acquainted with the matter claimed Dongfeng would return the favor by permitting Stellantis to construct automobiles in China, and we now know that’s formally occurring.
Peugeot Idea 6 and Idea 8
Picture by: Peugeot
Motor1’s Take: It’s too quickly to say how a lot Jeep and Peugeot DNA these 4 China-assembled automobiles will even have. With Dongfeng doing many of the heavy lifting financially, it’s affordable to anticipate merchandise developed primarily with the Chinese language market in thoughts, albeit with world ambitions. The emphasis on “initially” two fashions for every model additionally leaves the door open for extra automobiles down the road.
Stellantis hasn’t mentioned which components of the world will obtain the upcoming fashions, however Dongfeng boss Qing Yang describes the brand new settlement as a “win-win.” On the Stellantis aspect, CEO Antonio Filosa hinted at a good nearer partnership: “We sit up for this challenge and to collaborate much more sooner or later.”
