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Stellantis and Dongfeng Strike Deal to Build Peugeot and Jeep EVs in China

The move signals Stellantis’ pivot toward Chinese partners to build cheaper, faster-to-market EVs.

Overview

  • Stellantis and state-owned Dongfeng signed a strategic cooperation agreement Friday, alongside a non-binding memo that targets deeper R&D ties.
  • Production will run through their DPCA venture in Wuhan starting in 2027 with two new Peugeot electric models and two Jeep off-road electric models for China and export.
  • The project totals more than CN¥8 billion in planned spending, with Stellantis contributing about €130 million and local support from Hubei province and Wuhan city.
  • The plan remains conditional on final implementation agreements and regulatory approvals, with the next update expected at an investor day on May 21.
  • The agreement aligns with Stellantis’ broader China strategy that includes Leapmotor deals to use Chinese technology for lower-cost EVs and to better use idle European factory space.