Stellantis and Dongfeng Strengthen Their Alliance with a 1 Billion Euro Investment in China
Stellantis and Dongfeng Group announced on Friday the strengthening of their 34-year strategic partnership with the joint production of Peugeot and Jeep vehicles at their DPCA joint venture in China. The two groups also signed a non-binding strategic memorandum of understanding.
Production of Two New Peugeot and Jeep Models Starting in 2027
Under the strategic cooperation agreement signed on Friday, the Dongfeng Peugeot Citroën Automobile Co., Ltd (DPCA) will initially produce two next-generation electric vehicles under the Peugeot brand at its Wuhan plant starting in 2027. These models will be based on the design language of the concept cars presented by Peugeot at the Beijing Auto Show in 2026 and are intended for the Chinese market and global export as part of Peugeot's international growth plan. The plan also includes the production in Wuhan of two next-generation electric vehicles under the Jeep brand for global markets, starting in 2027.
Combined Investment of Over 8 Billion Chinese Yuan
The project represents a combined investment of more than 8 billion Chinese yuan (approximately 1 billion euros), with Stellantis expected to contribute approximately 130 million euros. The project benefits from the favorable automotive industrial policies of Hubei province and the city of Wuhan. The implementation of the project remains subject to the execution of relevant implementation agreements, including economic and operational principles, as well as the satisfaction of customary conditions and approvals.
Non-Binding Strategic Memorandum of Understanding Signed
Stellantis and Dongfeng Group have also signed a non-binding strategic memorandum of understanding aimed at enhancing their cooperation by leveraging the scale, expertise, and research and development capabilities of both parties.
