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Dongfeng Signs RMB 8 Billion Stellantis Deal to Produce Peugeot, Jeep EVs in China

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Dongfeng Signs RMB 8 Billion Stellantis Deal to Produce Peugeot, Jeep EVs in China

Dongfeng Motor, the parent company of Dongfeng Electronic Technology (SHA:600081), has struck a deal with Stellantis to revive a three-decade-old joint venture, securing rights to produce Peugeot and Jeep-branded electric vehicles in China.

The two automakers agreed to a combined investment of over 8 billion yuan to manufacture EVs for both domestic consumers and global export markets, according to a joint statement released Friday. Stellantis will contribute approximately 130 million euros, or roughly 1 billion yuan, of that total.

Under the deal, their existing joint venture, Dongfeng Peugeot Citroën Automobile, which has operated since 1992, will initially produce two all-new Peugeot-branded new energy vehicles in Wuhan starting in 2027.

Two Jeep-branded off-road electric vehicles destined for global markets will also roll off the same production line that year.

The deal deepens a long-running relationship between the two companies. In 2014, Dongfeng injected 800 million euros into Peugeot's then-parent PSA Group, acquiring a 14.1% stake.

After PSA merged with Fiat Chrysler Automobiles to form Stellantis, Dongfeng gradually divested, trimming its stake in the combined entity to 3.16%.

In 2023, Stellantis repurchased half of that holding, a 1.58% stake, from Dongfeng for 934 million euros, leaving Dongfeng with the remaining 1.58%.

"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," said Stellantis CEO Antonio Filosa.

Dongfeng Group Chairman Qing Yang added: "Through the signing of this strategic cooperation, by integrating Hubei's industrial strengths, Stellantis' global layout advantages and Dongfeng's intelligent electric vehicle technologies, a new path featuring complementary strengths and win-win outcomes for all parties has been forged."

Dongfeng delisted from the Hong Kong Stock Exchange on March 18.

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