Stellantis and its long-standing Chinese partner Dongfeng Motor Corporation have signed a $1.2 billion agreement to produce Peugeot and Jeep-branded vehicles in China, marking a renewed push to strengthen their position in the world’s largest automotive market.
The deal, valued at more than 8 billion yuan, includes an investment contribution of around €130 million from Stellantis. It will be supported by industrial policy incentives from Hubei province and the city of Wuhan, where key production facilities are located.
The agreement is designed to serve both domestic Chinese demand and export markets, forming a central part of Stellantis’ broader global restructuring strategy. Chief executive Antonio Filosa is expected to unveil the company’s updated long-term roadmap on May 21, with the China partnership seen as a key pillar of that plan.
In addition to the investment agreement, the two companies signed a non-binding strategic framework aimed at deepening cooperation across manufacturing, research and development. Both sides said the collaboration would leverage their combined industrial scale and technical expertise.
The announcement comes as Chinese automakers increasingly look to expand their global footprint, including interest in underused manufacturing capacity across Europe. At the same time, Stellantis has been reassessing its international production network and exploring partnerships to improve efficiency and market access.
The company recently announced a separate joint manufacturing arrangement in Europe with Chinese EV maker Leapmotor, further highlighting its growing reliance on Chinese partnerships in both domestic and overseas operations.
Under the new Stellantis–Dongfeng agreement, Peugeot vehicles will be manufactured in China using technology from the joint DPCA venture. The companies also confirmed plans to produce two Jeep-branded electric off-road vehicles at the Wuhan plant, with production expected to begin next year and target global markets.
The move marks a return of Jeep production to China after Stellantis and its former partner GAC ended their joint Jeep manufacturing venture in 2022. Since then, Jeep models have been imported into China rather than produced locally.
Antonio Filosa said the partnership builds on more than three decades of cooperation between the two companies.
“With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to further leverage their strengths and introduce all-new vehicles with cutting-edge EV technologies,” he said. “We look forward to this project and to collaborating even more in the future.”
Dongfeng Motor Corporation still holds a small stake of just over 1% in Stellantis, maintaining a financial link dating back to its investment in Peugeot prior to the 2021 merger that formed the current group.
