Stellantis wants to expand its presence in the Chinese market with the return of production of Jeep models and also of Peugeot
Jeep is the apple of Stellantis’ eye, one of the few brands with global penetration. And it will be with it that the group wants to regain ground in China. The brand with the seven slots will return to producing vehicles in Chinese territory after four years out of the market. The decision is part of a new agreement signed between Stellantis and the Chinese state-owned Dongfeng Motor Corporation, which provides for investments of US$ 1.18 billion in a new phase of the industrial partnership between the companies.
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The project foresees the manufacture of electrified models of the Jeep and also Peugeot brands in Wuhan, a city considered one of the main automotive hubs in China. Production will begin in 2027 and will focus on both the Chinese market and exports to regions such as Southeast Asia, the Middle East and Latin America.
According to information released by the companies, two new Jeep models with an electrified off-road proposal will be produced, in addition to two Peugeot vehicles. At the Beijing Motor Show, Peugeot shared a stand with Citroën and dedicated itself to exhibiting concept models that can serve as inspiration for future products aimed at that market. The operation will utilize the existing industrial structure of the DPCA joint venture, originally created by Dongfeng and PSA, prior to the formation of Stellantis.
Jeep’s return to China comes after the end of the old partnership with GAC, dissolved in 2022 after years of declining sales and difficulties to keep up with the rapid electrification of the Chinese market. At the time, local production of models such as Compass, Renegade and Cherokee was terminated.
The new strategy reinforces Stellantis’ approach to Chinese manufacturers. In addition to Dongfeng, the group already has a partnership with Leapmotor for global expansion of electric vehicles. The move also highlights Western automakers’ attempt to take advantage of China’s competitiveness in batteries, software and electrified vehicle production. The watchword is to unite and not measure strength with the dragon.
