Stellantis and Dongfeng are investing €1 billion ($1.16B).
The money will go toward building two Jeep and two Peugeot models in China from 2027.
Featuring electrified powertrains, the four cars will be assembled in Wuhan.
If you can’t beat them, join them; that about sums up the state of the automotive industry in 2026. China has become a force to be reckoned with, and long-established automakers have certainly taken notice of their rivals’ meteoric rise. Stellantis may have 14 brands under its massive corporate umbrella, but it’s relying on Dongfeng to build at least four new models for both local consumption and export markets.
Stellantis has inked a new deal with Dongfeng to invest a combined eight billion Chinese Yuan (€1 billion or $1.16 billion at current exchange rates). Dongfeng will shoulder the lion’s share of the investment, while Stellantis is contributing only about €130 million ($151 million). The funding will help bring several Jeep and Peugeot models to market. Each brand will initially receive two vehicles, starting in 2027.
All of them are set to be assembled at a plant in Wuhan owned by the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture. Yes, that Wuhan. They’ll all be new energy vehicles (NEVs), a category that includes plug-in hybrids, fully electric vehicles, and EVs equipped with a combustion engine acting as a generator to charge the battery pack.
Photos by: Peugeot
Photos by: Peugeot
Stellantis remains tight-lipped about other details regarding the new Jeeps arriving next year, only saying they’ll have an off-road focus. On the Peugeot side, the two models will be inspired by the striking wagon and SUV duo unveiled last month at the Beijing Auto Show. The Concept 6 and Concept 8 introduced a new design language for the Chinese market, and now we’re learning the fresh look is set to go global in 2027.
Although Stellantis is only five years old, the French side of the automotive conglomerate has been working with state-owned Dongfeng for the past 34 years. PSA Peugeot Citroën established the joint venture with the Chinese automaker back in 1992. These four new vehicles are only part of the story, as the companies have also signed a non-binding strategic memorandum of understanding (MoU) to further deepen their ties.
Last month, a Bloomberg report alleged that Stellantis could allow Dongfeng to build cars in Europe at some of its underused factories. People familiar with the matter claimed Dongfeng would return the favor by allowing Stellantis to build cars in China, and we now know that’s officially happening.
Peugeot Concept 6 and Concept 8
Photo by: Peugeot
Motor1’s Take: It’s too soon to say how much Jeep and Peugeot DNA these four China-assembled vehicles will actually have. With Dongfeng doing most of the heavy lifting financially, it’s reasonable to expect products developed primarily with the Chinese market in mind, albeit with global ambitions. The emphasis on “initially” two models for each brand also leaves the door open for additional vehicles down the line.
Stellantis hasn’t said which parts of the world will receive the upcoming models, but Dongfeng boss Qing Yang describes the new agreement as a “win-win.” On the Stellantis side, CEO Antonio Filosa hinted at an even closer partnership: “We look forward to this project and to collaborate even more in the future.”
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