Bond.az -- Stellantis NV (BIT:STLAM) and China's Dongfeng Motor Group said on Friday they had signed an agreement to produce Peugeot and Jeep-branded electric vehicles at their joint venture plant in Wuhan from 2027, expanding a 34-year partnership.
The agreement covers the Dongfeng Peugeot Citroën Automobile Co. (DPCA) joint venture and involves combined investment of more than 8 billion yuan (about €1 billion), of which Stellantis is expected to contribute around €130 million.
DPCA's Wuhan plant is initially expected to produce two all-new Peugeot-branded new energy vehicles and two Jeep-branded off-road new energy vehicles for the Chinese market and for export globally, starting in 2027.
The Peugeot models will be based on concept cars unveiled at the 2026 Beijing Auto Show.
The companies also signed a non-binding memorandum of understanding aimed at deepening cooperation through greater scale, shared expertise and joint research and development capabilities.
"With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to further leverage their strengths and introduce all-new vehicles with cutting-edge EV technologies from brands that customers worldwide trust and love," Stellantis chief executive Antonio Filosa said in a statement.
Dongfeng Group Chairman Qing Yang said the agreement would forge "a new path featuring complementary strengths and win-win outcomes for all parties" and inject "strong momentum into DPCA's transformation."
The project is backed by automotive industrial policies of Hubei province and the Wuhan municipal government.
Implementation remains subject to the execution of relevant agreements, including economic and operational terms, and the fulfilment of customary conditions and approvals.
