Stellantis Strikes 2 Partnerships, Taking 51% in Dongfeng Europe Venture
Updated
Updated · Detroit Free Press · May 20
Stellantis Strikes 2 Partnerships, Taking 51% in Dongfeng Europe Venture
2 articles · Updated · Detroit Free Press · May 20
Stellantis announced two partnerships before its investor day: a memorandum with Jaguar Land Rover to collaborate on U.S. product development and a proposed manufacturing venture with Dongfeng.
The Dongfeng plan would let Stellantis build Jeep and Peugeot vehicles in China while Dongfeng uses Stellantis plants in Europe, through a Europe-based joint venture owned 51% by Stellantis and 49% by Dongfeng.
Jaguar Land Rover's agreement is narrower and less detailed, centered on exploring further joint product-development opportunities in the United States.
The deals are part of Stellantis' broader strategic overhaul as it tries to revive sales and profits after years of weak performance, with new guidance due at Thursday's investor day.
For Stellantis, the Dongfeng tie-up would extend an existing pattern of China partnerships; it already runs another 51-49 joint venture with EV maker Leapmotor.
As Chinese EVs roll out of its European plants, is Stellantis saving the continent's auto industry or accelerating its demise?
Facing a €22 billion loss, is Stellantis’s Chinese partnership a lifeline or a deal that surrenders its future?