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Stellantis, Dongfeng sign $1.17 billion deal to build Peugeot, Jeep vehicles in China - Finance news and analysis from Global Banking & Finance Review
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Stellantis, Dongfeng sign $1.17 billion deal to build Peugeot, Jeep vehicles in China

Published by Global Banking & Finance Review

Posted on May 15, 2026

1 min read

· Last updated: May 15, 2026

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Stellantis, Dongfeng sign $1.17 billion deal to build Peugeot, Jeep cars in China

Major Joint Venture Announced for Chinese Automotive Market

May 15 (Reuters) - Stellantis signed a 1 billion euro ($1.17 billion) joint venture deal with Chinese state-owned Dongfeng to produce its Peugeot and Jeep brands of vehicles in China, the automaker said on Friday.

Stellantis Investment Details

Stellantis is expected to contribute about 130 million euros for the project.

Production Plans and Vehicle Models

Jeep-Branded Off-Road New Energy Vehicles

Dongfeng's Wuhan plant will manufacture two Jeep-branded off-road new energy vehicles for global markets starting in 2027,  Stellantis said in a statement.

Peugeot-Branded Vehicles for China

The plant will also produce two Peugeot-branded vehicles for the Chinese market from the same year, the statement added.

Peugeot's Renewed Push in China

Concept Cars Unveiled

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. 

Exchange Rate Information

($1 = 0.8583 euros)

Article Contributors

(Preetika Parashuraman in Bengaluru; Editing by Subhranshu Sahu and Harikrishnan Nair)

Key Takeaways

  • The deal revives Stellantis’s partnership with state-owned Dongfeng, leveraging its Wuhan plant for local production of Peugeot and Jeep models in China (bloomberg.com)
  • Stellantis’ €130 million contribution underscores its strategic focus on its core brands—Jeep, Peugeot, Fiat and Ram—aligned with its broader turnaround plan unveiled in May (m.investing.com)
  • This move is part of Stellantis’s efforts to address industrial overcapacity in Europe and reinvigorate its China operations amid broader capacity optimization, including discussions with Chinese partners at European sites (lemonde.fr)

References

Frequently Asked Questions

What companies are involved in the $1.17 billion vehicle production deal?
Stellantis and Chinese state-owned Dongfeng are the companies involved in the deal.
What vehicles will Stellantis and Dongfeng produce under the new agreement?
The agreement covers the production of Peugeot and Jeep vehicles in China.
How much is Stellantis expected to contribute to the joint project?
Stellantis is expected to contribute about 130 million euros to the project.
What is the total value of the Stellantis and Dongfeng deal?
The total value of the deal is approximately 1 billion euros, or $1.17 billion.

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