Stellantis and Dongfeng Sign $1.2 Billion Deal to Produce Peugeot and Jeep Vehicles in China

Stellantis and its longtime Chinese partner Dongfeng have signed a $1.2 billion deal to produce Peugeot- and Jeep-branded vehicles in China, the automakers said. The agreement was announced on Friday. It covers local manufacturing of the two brands in China and points to possible broader cooperation in the future.

The companies have maintained a partnership for years. The new deal aims to restart and expand vehicle production that had faced earlier challenges in the Chinese market.

Dongfeng has served as a key partner for Stellantis in China for more than two decades. The $1.2 billion commitment reflects continued foreign investment in China's auto sector even as domestic brands have gained market share. Production under the new deal is expected to focus on SUVs and passenger vehicles carrying the Peugeot and Jeep nameplates.

The companies did not disclose the exact timeline for starting production or the specific manufacturing sites to be used. Further details on the scope of expanded cooperation were not released in the initial announcement.

China remains the world's largest automotive market.

Many global automakers have sought joint-venture partnerships with local manufacturers to meet regulatory requirements and tap into domestic demand. Stellantis has faced declining sales in China in recent years. The fresh agreement with Dongfeng is intended to reverse that trend through localized production of its global brands.