Stellantis and Dongfeng to Produce Electrified Peugeot and Jeep Models in China

Stellantis has signed an agreement with Dongfeng worth 8 billion yuan (approximately $1.18 billion) to produce new electrified Peugeot and Jeep models in China. The vehicles will be built for both the local market and export.

Production will take place at the Dongfeng Peugeot Citroen Automobile joint venture plant in Wuhan. Starting in 2027, two new Peugeot models using new energy sources are expected to roll off the line. Their design will draw from the Peugeot Concept 6 and Concept 8, which debuted at the 2026 Beijing Auto Show.

Later, the same facility will also produce two off-road Jeep NEV models for global markets. Stellantis is contributing around €130 million (about $153 million) to the project. This is no one-off move—it's part of a broader strategy to lean on Chinese alliances where its own sales and plant capacity have fallen.

Stellantis and Dongfeng have a long history—the partnership dates back 34 years. But the context has shifted. The European automaker now needs not just joint models but rapid access to Chinese technology, cost efficiency, and production speed. Against a net loss of €22.3 billion (around $26.3 billion) in 2025, such alliances look less like experiments and more like a way to keep pace.

Meanwhile, Stellantis is deepening its ties with Leapmotor, exploring new production setups in Spain, and reportedly eyeing collaborations with Huawei, JAC, and Maserati. Chinese firms, for their part, are circling underutilized European plants.

It's a strange reversal: not long ago, European automakers were teaching China how to build global cars. Now, Chinese partners are helping Europeans stay in the EV race.