Stellantis and Dongfeng to create EV joint venture in France

Stellantis and Chinese state-owned automaker Dongfeng are set to announce a new joint venture that will see Dongfeng's luxury brand, Voyah, produce electric vehicles at a Stellantis factory in Rennes, France, according to sources familiar with the matter. The deal, which could be announced imminently, marks a significant deepening of ties between the two automotive groups.

Under the reported agreement, Stellantis will hold a 51 percent controlling stake in the European joint venture. The arrangement will allow Voyah vehicles to be assembled within the European Union, thereby avoiding recently imposed EU tariffs on Chinese-made electric cars. This move follows a separate deal announced last week in which Dongfeng will manufacture Jeep and Peugeot models in China for both the local and global markets.

The partnership addresses strategic needs for both companies. For Stellantis, the agreement provides a production boost for its underutilized Rennes plant. The facility, which once produced over 400,000 vehicles annually on three lines, currently assembles only the Citroën C5 Aircross SUV on a single line. For Dongfeng, establishing local production in Europe is a key step in its...