On the Dash:
- Stellantis is accelerating its EV strategy through deeper partnerships with Chinese automakers and suppliers.
- China’s leadership in EV technology continues to reshape global manufacturing and sourcing decisions.
- Future Jeep and Peugeot EV development may increasingly rely on Chinese platforms, batteries, and software.
Stellantis is expanding its electric-vehicle strategy in China through a new $1.17 billion partnership with Dongfeng Group to produce Peugeot and Jeep new-energy vehicles at a joint-venture factory in Wuhan.
The agreement reflects a broader shift across the global auto industry as Western automakers increasingly partner with Chinese manufacturers to access EV technology, batteries, software, and production expertise.
Under the deal, Stellantis and Dongfeng will co-manufacture two all-new Peugeot new energy vehicles and two Jeep NEVs, including fully electric and plug-in hybrid models. Production is scheduled to begin in 2027, with the vehicles slated for sale in China and overseas markets.
Stellantis and Dongfeng, which have worked together for more than three decades, said the project represents an investment of about 1 billion euros, or $1.17 billion. Stellantis will contribute approximately 130 million euros.
Chinese automakers have gained a competitive edge in EV development through advances in batteries, driving systems, and in-car technology. That progress has pushed several Western automakers to deepen partnerships with Chinese companies rather than compete directly against them.
Stellantis has emerged as one of the first major Western automakers to aggressively expand ties with Chinese EV manufacturers.
Last week, the company announced plans to deepen its partnership with Chinese EV maker Leapmotor, including the manufacture of vehicles in Spain. The move marked the first time a major Western automaker offered European manufacturing capacity to a Chinese brand.
Stellantis acquired a 21% stake in Leapmotor in 2023 and continues to operate a joint venture with the Hangzhou-based automaker.
