Stellantis signs Europe joint venture with China’s Dongfeng
ByAFP
May 20, 2026
Dongfeng will build its Voyah cars at a Stellantis plant to gain ground in Europe - Copyright AFP Jade GAO
Laurence BENHAMOU
Jeep and Fiat owner Stellantis said Wednesday that it had formed a joint venture with China’s Dongfeng to share manufacturing, sales and engineering operations in Europe.
The deal to bolster sales as the EU pushes carmakers to produce more clean-energy vehicles will see Dongfeng’s Voyah EVs built at Stellantis’s plant in Rennes, western France, for the European market, the companies said in a statement.
By building locally, Dongfeng can avoid hefty EU tariffs on Chinese EV imports imposed as a way to protect domestic automakers.
It is the latest move by Stellantis chief Antonio Filosa to revive sales and profits at the world’s fourth-largest automaker, in particular in Europe, where the shift away from combustion engines has sputtered.
The company announced earlier this month a deal with Dongfeng to build Jeep and Peugeot models for the Chinese market, and increase cooperation on technology research and development.
Dongfeng and other Chinese carmakers meanwhile are looking to Europe and other export markets as their home market remains tough, with consumer spending slumping.
Brands such as BYD, Chery, Geely, Leapmotor, Jaecoo, and XPeng were virtually unknown three years ago in Europe.
– ‘Greater value’ –
Stellantis will lead the Europe joint venture with a 51 percent stake, while Dongfeng will have 49 percent. Financial details were not disclosed.
“With this new chapter in our collaboration, we will give our customers an even greater choice of competitive products and pricing, leveraging the best of Stellantis’s global footprint alongside Dongfeng’s access to China’s advanced new energy vehicles ecosystem,” Filosa said in a statement.
Dongfeng’s chairman Qing Yang said in the statement: “Through coordination in technology, branding, and global markets, it will unlock greater value from the joint venture, accelerate Dongfeng’s global expansion, (and) support Stellantis’s global strategic shift and China presence.”
The Rennes plant has been operating well below capacity for years as demand in the European auto market remains well below pre-Covid levels, and currently produces only a high-end Citroen SUV.
Stellantis announced Tuesday that it would start building smaller, low-cost electric cars for the European market as buyers increasingly look to rival Chinese models.
EU rules call for 90 percent of all cars sold in the bloc to be electric by 2035, and the European Commission recently created a new, tax-friendly category for small EVs to encourage demand.
Stellantis, formed from the merger of France’s PSA and Italy-based Fiat Chrysler five years ago, said its Dongfeng Peugeot Citroen Automobile joint venture had built over 6.5 million cars in China since its creation 34 years ago.
Filosa is set to lay out the company’s strategy to jump-start sales and profits for its 14 brands at an investors’ day in Michigan, the heart of the US auto industry, on Thursday.
ByAFP
May 20, 2026
Dongfeng will build its Voyah cars at a Stellantis plant to gain ground in Europe - Copyright AFP Jade GAO
Laurence BENHAMOU
Jeep and Fiat owner Stellantis said Wednesday that it had formed a joint venture with China’s Dongfeng to share manufacturing, sales and engineering operations in Europe.
The deal to bolster sales as the EU pushes carmakers to produce more clean-energy vehicles will see Dongfeng’s Voyah EVs built at Stellantis’s plant in Rennes, western France, for the European market, the companies said in a statement.
By building locally, Dongfeng can avoid hefty EU tariffs on Chinese EV imports imposed as a way to protect domestic automakers.
It is the latest move by Stellantis chief Antonio Filosa to revive sales and profits at the world’s fourth-largest automaker, in particular in Europe, where the shift away from combustion engines has sputtered.
The company announced earlier this month a deal with Dongfeng to build Jeep and Peugeot models for the Chinese market, and increase cooperation on technology research and development.
Dongfeng and other Chinese carmakers meanwhile are looking to Europe and other export markets as their home market remains tough, with consumer spending slumping.
Brands such as BYD, Chery, Geely, Leapmotor, Jaecoo, and XPeng were virtually unknown three years ago in Europe.
– ‘Greater value’ –
Stellantis will lead the Europe joint venture with a 51 percent stake, while Dongfeng will have 49 percent. Financial details were not disclosed.
“With this new chapter in our collaboration, we will give our customers an even greater choice of competitive products and pricing, leveraging the best of Stellantis’s global footprint alongside Dongfeng’s access to China’s advanced new energy vehicles ecosystem,” Filosa said in a statement.
Dongfeng’s chairman Qing Yang said in the statement: “Through coordination in technology, branding, and global markets, it will unlock greater value from the joint venture, accelerate Dongfeng’s global expansion, (and) support Stellantis’s global strategic shift and China presence.”
The Rennes plant has been operating well below capacity for years as demand in the European auto market remains well below pre-Covid levels, and currently produces only a high-end Citroen SUV.
Stellantis announced Tuesday that it would start building smaller, low-cost electric cars for the European market as buyers increasingly look to rival Chinese models.
EU rules call for 90 percent of all cars sold in the bloc to be electric by 2035, and the European Commission recently created a new, tax-friendly category for small EVs to encourage demand.
Stellantis, formed from the merger of France’s PSA and Italy-based Fiat Chrysler five years ago, said its Dongfeng Peugeot Citroen Automobile joint venture had built over 6.5 million cars in China since its creation 34 years ago.
Filosa is set to lay out the company’s strategy to jump-start sales and profits for its 14 brands at an investors’ day in Michigan, the heart of the US auto industry, on Thursday.
By AFP
May 19, 2026
Stellantis CEO Antonio Filosa, right, with a Fiat 500 hybrid, one of the models he is banking on to spur EV sales in Europe - Copyright AFP MARCO BERTORELLO
Stellantis, owner of the Jeep and Fiat brands, announced Tuesday that it would start building smaller, low-cost electric cars for the European market, where demand for clean-energy vehicles has fallen short of automakers’ hopes.
It it the latest carmaker on the continent to embrace more affordable EVs in the face of brutal competition from Chinese rivals looking to make inroads overseas.
The company did not specify which of its 14 brands would start producing its “E-Cars” at Stellantis’s Pomigliano d’Arco factory near Naples in Italy.
“Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly,” chief executive Antonio Filosa said in a statement.
Filosa was brought in last year with a mandate to address multiple challenges for the world’s fourth-biggest automaker, not least under-utilisation of its European factories in a market still recovering from the Covid-19 pandemic.
Automakers are also racing to shift away from combustible engines under EU rules that call for 90 percent of all cars sold in the bloc to be electric by 2035.
To ease the transition, the European Commission created last December a new category for small EVs that would get more favourable tax treatment and count more in their overall electric offerings — if they are built in Europe.
Renault has already jumped in with its R5 and Twingo models, while Volkswagen is rolling out a new ID.Polo, unveiled last month.
“The E-Car… is being developed in the true tradition of European ‘people’s mobility — addressing the unprecedented contraction of the small affordable car segment in Europe in recent years,” Stellantis said.
The announcement comes as the company is reportedly exploring deals with Chinese automakers to sell them underused European factories.
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