Business
Stellantis Expands China Push With $1.2 Billion Jeep Partnership
Stellantis Expands China Push With $1.2 Billion Jeep Partnership
About this update from Stellantis N.v.
Stellantis NYSE:STLA is leaning back into China at a critical moment, agreeing with Dongfeng Motor Corp. to jointly build Jeep vehicles in Wuhan as the automaker tries to sharpen its global strategy and regain ground in the world's largest auto market. The Dongfeng Peugeot Citroen Automobile Co. venture is expected to begin producing two Jeep off-road models and two Peugeot new-energy models from 2027, with the vehicles aimed at both China and overseas markets. The move signals how Western automakers could increasingly rely on Chinese manufacturing, technology and supply chains as they look to compete more aggressively in electric vehicles.The agreement marks a notable shift for Jeep, one of America's most recognized auto brands, at a time when political pressure between Washington and Beijing remains high. The project involves investments of more than 8 billion yuan, or $1.2 billion, with Stellantis contributing about 130 million, or $151 million. The timing also gives the deal added market weight, coming as US President Donald Trump visits China this week for talks with President Xi Jinping, reinforcing how closely connected the global auto industry remains despite pressure to reduce dependence on Chinese technology and manufacturing.For investors, the Dongfeng deal could become a key part of Stellantis' wider reset under CEO Antonio Filosa and Chairman John Elkann, as the company looks to improve EV competitiveness, lower costs and rebuild growth through Chinese partnerships. Stellantis shares rose as much as 1.3% in early Friday trading in Milan before paring gains, though the stock remains down 29% this year, making it the worst car-industry performer on the Stoxx 600 index. The agreement follows Stellantis' move last month to resume Peugeot production with Dongfeng, while the company is also expanding cooperation with Zhejiang Leapmotor Technology Co. and preparing to outline a broader turnaround plan at its investor day later this month.