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Stellantis (NYSE:STLA) and Dongfeng Motor Group announced on Friday that they have signed an agreement to manufacture Peugeot and Jeep-branded electric vehicles at their joint venture facility in Wuhan beginning in 2027, extending a partnership that has spanned more than three decades.
The agreement relates to the Dongfeng Peugeot Citroën Automobile Co. (DPCA) joint venture and includes planned combined investment exceeding 8 billion yuan, equivalent to roughly €1 billion. Stellantis is expected to contribute approximately €130 million toward the project.
New EV Models Planned for China and Export Markets
The Wuhan production site is initially expected to manufacture two newly developed Peugeot-branded new energy vehicles alongside two Jeep-branded off-road new energy vehicles. Production is scheduled to begin in 2027, with vehicles intended for both the Chinese domestic market and international export markets.
The upcoming Peugeot models will draw from concept vehicles previously showcased at the 2026 Beijing Auto Show.
Companies Seek Broader Strategic Cooperation
In addition to the production agreement, the two companies signed a non-binding memorandum of understanding aimed at expanding cooperation through larger operational scale, shared expertise, and joint research and development initiatives.
“With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to further leverage their strengths and introduce all-new vehicles with cutting-edge EV technologies from brands that customers worldwide trust and love,” Stellantis chief executive Antonio Filosa said in a statement.
Qing Yang, chairman of Dongfeng Group, said the partnership would forge “a new path featuring complementary strengths and win-win outcomes for all parties” while injecting “strong momentum into DPCA’s transformation.”
Project Backed by Local Government Policies
The initiative is being supported by automotive industry policies introduced by Hubei province and the Wuhan municipal government.
The companies noted that the agreement remains subject to the completion of formal contracts covering operational and economic terms, as well as customary approvals and regulatory conditions.
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