Stellantis and Dongfeng Expand Peugeot and Jeep NEV Production in China

Stellantis NV has signed an 8 billion yuan agreement with Dongfeng Motor to expand the production of Peugeot and Jeep new energy vehicles in China for domestic sales and export operations. The agreement strengthens the long-running collaboration between the two companies and reinforces Stellantis’ strategy to deepen its presence in the global electric vehicle market. Production activities under the agreement will be carried out through the Dongfeng Peugeot Citroën Automobile joint venture at its Wuhan manufacturing facility beginning in 2027.

The DPCA joint venture plans to initially manufacture two all-new Peugeot-branded NEV models at the Wuhan plant. According to the company statement, the vehicles will incorporate the latest design direction previewed during the 2026 Beijing Auto Show. Peugeot introduced two global concept models, the Peugeot Concept 6 and Peugeot Concept 8, during the event earlier this month, showcasing the company’s future styling and electrification strategy for international markets.

Stellantis stated that the upcoming Peugeot vehicles are intended not only for the Chinese domestic market but also for export to overseas regions as part of the brand’s wider international expansion strategy. In addition to the Peugeot models, the project also includes plans to manufacture two Jeep-branded off-road NEVs at the Wuhan facility for global markets. Production for the Jeep models is also scheduled to begin in 2027 as the company accelerates its electrification roadmap.

The following table highlights the planned NEV production initiatives under the Stellantis and Dongfeng agreement.

The project represents a combined investment exceeding 8 billion yuan, with Stellantis expected to contribute approximately €130 million. The latest agreement further extends the 34-year partnership between Stellantis and Dongfeng. At the same time, the companies are also discussing potential cooperation opportunities in Europe involving underutilized manufacturing facilities. Reports indicated that Dongfeng representatives recently visited factories in Germany and Italy to evaluate possible investments or acquisitions linked to excess industrial capacity.

Stellantis Chief Executive Officer Antonio Filosa is pursuing a broader recovery strategy after the company experienced prolonged weak sales performance. The latest partnership adds to Stellantis’ growing network of collaborations with Chinese automotive manufacturers. The automaker recently announced an expansion of its strategic cooperation with Leapmotor, including plans to increase production capacity in Spain and transfer ownership of certain manufacturing assets.

Under the expanded Stellantis-Leapmotor partnership, the companies plan to establish a new production line at the Zaragoza plant in Spain. The facility, which has produced more than 10 million Opel Corsa vehicles since 1982, is expected to manufacture a new Opel electric SUV alongside the Leapmotor B10 in the future. Stellantis also plans to transfer ownership of its Villaverde manufacturing facility in Madrid to Leapmotor International’s Spanish subsidiary as part of the restructuring effort.

The Villaverde plant is expected to receive a new Leapmotor vehicle program during the first half of 2028. Leapmotor has recently demonstrated strong sales momentum, delivering 71,387 vehicles in April alone. The Leapmotor International joint venture also surpassed 40,000 vehicle deliveries across Europe during 2025, reflecting rising demand for affordable electric mobility solutions in overseas markets.

Despite expanding its strategic alliances, Stellantis continues to face significant financial pressure. The company reported a net loss of €22.3 billion in 2025 as it navigates slowing demand and operational restructuring costs. Separate reports also indicated that Huawei, Anhui Jianghuai Automobile Group Corp, Stellantis, and Maserati are discussing cooperation to jointly develop new energy vehicles for the Maserati brand using a model similar to Huawei’s HIMA alliance framework.

The proposed cooperation could lead to the first jointly developed Maserati NEV entering mass production during the second half of next year. Meanwhile, excess manufacturing capacity across Europe continues attracting interest from several Chinese automakers. BYD is reportedly in discussions with Stellantis and other manufacturers regarding the possible takeover of underutilized European production facilities as companies seek faster regional expansion.

Chinese luxury vehicle brand FAW Hongqi is also negotiating with Stellantis regarding localized manufacturing in Spain. According to reports, Hongqi intends to use the Zaragoza plant to support its European expansion strategy. The negotiations were reportedly facilitated by Leapmotor after FAW Group acquired a 5% stake in the company last year. If finalized, Hongqi vehicles could eventually be assembled at Stellantis manufacturing facilities in Zaragoza.

Frequently Asked Questions

What is the Stellantis and Dongfeng agreement about?
Stellantis and Dongfeng have agreed to invest over 8 billion yuan to expand production of Peugeot and Jeep new energy vehicles in China starting in 2027. The project will be executed through the Dongfeng Peugeot Citroën Automobile joint venture at the Wuhan plant. The vehicles are intended for both domestic sales and international export markets. The partnership also supports Stellantis’ broader electrification strategy and strengthens its long-standing cooperation with Dongfeng across manufacturing and global automotive operations.

Which vehicles will be produced under the new DPCA project?
The Wuhan facility will initially produce two all-new Peugeot-branded new energy vehicles and two Jeep-branded off-road NEVs beginning in 2027. The Peugeot models will use the latest design language introduced through the Peugeot Concept 6 and Concept 8 revealed at the 2026 Beijing Auto Show. Stellantis plans to use the project to increase its global electric vehicle presence while supporting export operations from China to overseas automotive markets.

Why is Stellantis partnering with multiple Chinese automakers?
Stellantis is expanding partnerships with Chinese automakers to accelerate electrification, improve manufacturing efficiency, and strengthen its position in global EV markets. Collaborations with companies such as Dongfeng and Leapmotor provide access to competitive EV technology, production scale, and lower-cost manufacturing solutions. The company is also exploring ways to utilize underused European facilities through international cooperation as part of its restructuring and long-term growth strategy.