Stellantis Dongfeng deal
Stellantis to build Peugeot and Jeep EVs in China for global export in Dongfeng deal
Stellantis has expanded its DPCA joint venture with Dongfeng, committing to produce Peugeot and Jeep-branded new energy vehicles at its Wuhan plant from 2027 — targeting both Chinese consumers and international markets
Under the terms of a strategic cooperation agreement the DPCA facility in Wuhan, Hubei province, is expected to begin producing two all-new Peugeot-branded new energy vehicle (NEVs) from 2027. These vehicles will be built on the latest design language revealed at the 2026 Beijing Auto Show, with output destined for both Chinese consumers and international markets as part of Peugeot's broader growth ambitions. Alongside the Peugeot line, the plant is also slated to build two Jeep-branded off-road NEV models for global markets, also beginning in 2027.
The combined investment across both programmes totals over 8 billion Chinese Yuan — approximately €1 billion – with Stellantis contributing around €130m of that figure. The remainder will be supported by Hubei province and Wuhan municipality industrial policy incentives.
The Wuhan plant has historically been one of DPCA's core production sites, and its transformation into an NEV-capable facility represents a substantial recommitment to local manufacturing capacity. Rather than greenfield construction, Stellantis and Dongfeng are opting to repurpose existing infrastructure, a pragmatic approach that reduces capital expenditure while accelerating production timelines. Subject to regulatory approvals and finalisation of implementation agreements, volume production is targeted to begin within two years.
Stellantis CEO Antonio Filosa described the deal as leveraging more than three decades of shared automotive expertise. "We look forward to this project and to collaborate even more in the future," Filosa said, pointing to the value of combining established brand equity with cutting-edge EV technologies. Dongfeng Group Chairman Qing Yang framed the deal as complementary, citing the integration of Hubei's industrial strengths, Stellantis' global distribution advantages, and Dongfeng's intelligent EV technologies as the foundations of a "win-win" outcome.
The China announcement does not exist in isolation. Stellantis is simultaneously pursuing a parallel manufacturing strategy in Europe through its joint venture with Chinese EV maker Leapmotor. As reported by Automotive Manufacturing Solutions, Stellantis and Leapmotor have announced their intention to significantly expand their strategic partnership, moving beyond a distribution-led model into one centred on shared European manufacturing infrastructure and vehicle platform integration. The joint venture – structured as 51% Stellantis and 49% Leapmotor – has expanded to more than 850 points of sale and service across Europe and logged over 40,000 shipments on the continent in 2025 alone. Production is now being scaled into Spanish plants in Zaragoza and Madrid, with Leapmotor-derived models and an Opel C-SUV line both in the pipeline.
Internally, Stellantis is also transforming how it manages its broader production estate. AMS has reported on the rollout of the Stellantis Industrial System, a unified operating framework that formally brings together product, manufacturing and innovation, broadening its scope and discipline across quality, supply chain, parts distribution centres and manufacturing. The shift represents a move from a production-centric mindset to a wider industrial discipline, with cross-functional teams, AI-driven quality systems and supplier-led proof-of-concept trials being scaled across a geographically diverse global network.
The Wuhan plant's NEV conversion will therefore not operate in a vacuum. It will need to meet the standards of that evolving global system.
Together, the Dongfeng and Leapmotor moves paint a coherent picture: Stellantis is building a dual-axis manufacturing strategy, using China to produce vehicles for global export under established Western brands, while simultaneously embedding Chinese EV platforms into its European plant network. It is an approach that seeks to absorb Chinese manufacturing competitiveness rather than compete against it.
