Joint venture to produce cars for Chinese market as well as export
A Peugeot concept car is displayed at the Beijing auto show on April 24. © Reuters
(Reuters) — Stellantis and its longtime Chinese partner Dongfeng on Friday signed an approximately 1 billion euro ($1.16 billion) deal to produce Peugeot- and Jeep-branded vehicles in China for the domestic market as well as export, the automaker said on Friday.
The French-Italian carmaker first announced some details of the deal last month, saying at the time that its Peugeot brand would make China-built vehicles using Dongfeng technology.
Stellantis is expected to contribute about 130 million euros for the project, it said in a statement on Friday.
The automaker said its joint venture with Dongfeng would produce two new Peugeot-branded energy vehicles and two Jeep-branded off-road energy vehicles at its Wuhan plant from 2027.
Peugeot unveiled two new concept cars at the Beijing International Auto Show in April, a renewed industrial push by the French-Italian carmaker in the world’s largest auto market after years of weak sales and restructuring.
On Friday, the companies also signed an MoU to further strengthen their cooperation.