Stellantis and longtime Chinese partner Dongfeng Motor Group have signed an approximately $1.16 billion agreement to produce Peugeot- and Jeep-branded vehicles in China for both domestic sales and export markets.
Under the agreement, the companies will manufacture two new Peugeot energy vehicles and two Jeep-branded off-road energy vehicles at their Wuhan production facility starting in 2027, News.Az reports, citing Reuters.
Stellantis said it plans to contribute around 130 million euros to the project as part of its renewed expansion strategy in China, the world’s largest automotive market.
The deal follows earlier announcements from the French-Italian automaker that Peugeot would begin producing China-built models using Dongfeng technology. The partnership signals a broader effort by Stellantis to rebuild its presence in China after years of declining sales and restructuring efforts.
The companies also signed a memorandum of understanding aimed at strengthening long-term cooperation beyond the current production agreement.
Peugeot recently showcased new concept vehicles at the Beijing International Auto Show, highlighting the company’s renewed focus on electric and energy-efficient vehicles for the Chinese market.