Stellantis and Dongfeng sign 8 billion yuan EV deal for Peugeot, Jeep in Wuhan

Stellantis and Dongfeng Motor have signed an 8 billion yuan (about $1.2 billion) agreement to expand electric-vehicle production in China for the Peugeot and Jeep brands, using their Dongfeng Peugeot Citroën Automobile joint venture in Wuhan. The companies said four new electrified models, two for each brand, will roll off production lines in 2027, with the cars intended for sale in China and for export to overseas markets.

The investment will support local assembly of new “offroad new energy” Jeep models and new Peugeot vehicles, with the automakers also indicating that they will increase cooperation on technology research and development. Stellantis is expected to contribute about €130 million (around $150 million), while the total project investment is linked to industrial support in Hubei Province and Wuhan, according to the companies.

Stellantis CEO Antonio Filosa said in a statement that the partners “look forward to this project and to collaborate even more in the future,” as the group seeks to broaden its footprint in the world’s largest auto market. The company’s current China strategy has been shaped by intense competition from domestic electric-vehicle makers and by...