Stellantis closes R$5.9 billion deal with Dongfeng in China

Partnership has production of Peugeot and Jeep electric cars in Wuhan, Chinese city, from 2027

Automotive group Stellantis announced this Friday (May 15, 2026) a new agreement with Chinese state-owned automaker Dongfeng Motor to expand its operation in China’s electric vehicle market. The partnership has investments of more than €1 billion (R$5.91 billion) for the production of new models for the Peugeot and Jeep brands in the city of Wuhan.

The project will be led by the joint venture DPCA (Dongfeng Peugeot Citroën Automobile Co), a partnership maintained by the companies for 34 years. According to in a press release, around €130 million (R$767 million) of the investment will be provided by the company.

The initiative is part of the automaker’s strategy to reinforce its presence in China, the world’s largest automotive market and the main global center for the development of electric vehicles. The cars produced in Wuhan will be destined for both the Chinese market and export to other countries.

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Production is scheduled to begin in 2027. Initially, the factory will produce 2 new electric vehicles from Peugeot, in addition to 2 electric off-road SUVs from Jeep aimed at global markets.

The agreement also marks the resumption of Jeep production in China. The brand had ended its old joint venture with GAC in 2022 and, since then, operated in the country only through imports.

In addition to industrial production, Stellantis and Dongfeng signed an agreement to expand cooperation in research, development and technologies linked to electric vehicles.

Stellantis’ global CEO, Antonio Filosa, stated that the agreement represents a new stage in the relationship between the groups. According to him, the partnership will allow the development of vehicles “with advanced electrification technologies” for consumers from different markets.

Dongfeng chairman Qing Yang said that the project should accelerate the transformation of DPCA amid the advancement of Chinese electric vehicle manufacturers, according to the .

The announcement came amid growing rapprochement between Western automakers and Chinese companies to accelerate the development of electric vehicles and reduce production costs. In recent months, Stellantis itself has increased its cooperation with the Chinese Leapmotor in Europe.