Stellantis is exploring a renewed partnership with Dongfeng Motor that could involve joint vehicle production in Europe and China, according to a Bloomberg report. Under the discussions, Dongfeng would gain access to some of Stellantis’s underused factories in Europe, while producing select Stellantis-branded models at its facilities in China.
Representatives from Dongfeng recently visited Stellantis plants in Germany and Italy to assess potential sites. Conversations reportedly include the possibility of Dongfeng acquiring or investing in one or more European factories at a later stage, with both companies weighing long-term operational and financial implications.
This initiative forms part of Stellantis’s broader strategy to strengthen its competitive position as it faces pressure from rivals such as Volkswagen and BYD. Bringing in a manufacturing partner in Europe could help the company lower production costs, improve plant utilization rates and enhance overall efficiency. From Dongfeng’s perspective, local production within the European Union would allow it to avoid import tariffs and expand its presence in a key market.
The proposed collaboration would revive ties first established in the early 1990s, when PSA Group—the predecessor to Stellantis—formed a joint venture with Dongfeng to access the Chinese market. Over time, rising competition contributed to a decline in output and sales under that arrangement.
In parallel, Stellantis has been exploring alliances with other Chinese electric vehicle manufacturers. The company is in advanced talks with Leapmotor to co-develop an Opel electric SUV that would be produced at Stellantis’s Zaragoza plant, with production slated to begin in 2028 and an annual target of 50,000 vehicles. Stellantis made a 1.5 billion euro investment in Leapmotor in 2023, becoming the company’s largest external shareholder.
Source: CNEV Post
