AMSTERDAM and WUHAN - Stellantis N.V. (NYSE:STLA) and Dongfeng Group signed a non-binding memorandum of understanding to establish a Europe-based joint venture for sales, distribution, manufacturing, purchasing and engineering of Dongfeng new energy vehicles.
The partnership comes as Stellantis faces financial headwinds, with shares down 34% over the past year and trading at $7.39, well below its 52-week high of $12.18. According to Bond.az analysis, the stock appears undervalued based on Fair Value metrics.
The proposed joint venture would be led by Stellantis with a 51% stake, while Dongfeng would hold 49%. The new entity would handle sales and distribution of Dongfeng’s Voyah-branded vehicles in designated European markets.
The partners plan to produce Dongfeng new energy vehicles at Stellantis' Rennes plant in France, in compliance with European regulations. The joint venture would also conduct joint purchasing and engineering activities.
"The plans we are announcing today take our recently strengthened cooperation with Dongfeng to an all-new dimension," said Antonio Filosa, Stellantis CEO.
