On May 20, Stellantis Group announced that it had recently signed a non-binding memorandum of understanding with Dongfeng Motor Group Co., Ltd. (hereinafter referred to as “Dongfeng Group”). The two parties plan to further deepen their strategic partnership, building on their existing 34-year collaboration. Under the preliminary plan, the two companies intend to establish a new joint venture in Europe to handle the sales, distribution, manufacturing, procurement, and engineering and R&D of Dongfeng Group’s new energy vehicle models in designated European markets.
According to the current proposal, the joint venture will be headquartered in Europe and operated primarily by Stellantis Group, with Stellantis Group and Dongfeng Group holding a 51% to 49% stake in the venture. Specifically, the joint venture will focus on promoting the development of Dongfeng’s premium new energy brand, LTU, in the European market. By leveraging Stellantis’ established channel network and after-sales service system, the venture aims to enhance the brand’s market penetration in the region. Additionally, building on the deep synergy between Dongfeng and China’s new energy vehicle supply chain, the two parties plan to collaborate on joint procurement and engineering R&D.
Furthermore, the two parties are exploring the possibility of introducing localized production of Dongfeng’s new energy vehicle models at Stellantis’s plant in Rennes, France, to meet European market requirements for regulatory compliance and “Made in Europe” standards.
However, whether this cooperative project ultimately materializes remains contingent on factors such as project profitability, commercial operating conditions, progress in signing relevant agreements, and regulatory approvals.
In fact, on the 15th of this month, the two parties announced that they would continue to strengthen the development of their joint venture in China—Dongfeng Peugeot-Citroën Automobile Co., Ltd. (DPCA). According to the plan, starting in 2027, DPCA’s Wuhan plant will begin producing all-new new energy vehicle models under the Peugeot and Jeep brands for sale in global markets.
Data shows that since its establishment, DPCA has cumulatively produced over 6.5 million Peugeot and Citroën models, covering global markets.
