While Ford and General Motors wrestle with their China strategies, Stellantis is doubling down on the world’s largest auto market.
Stellantis, the maker of Jeep, Ram, and Peugeot, just made two sweeping moves that signal a sharply different playbook from its American rivals
The decisions come at a pivotal moment for the global auto industry, which is wrestling with tariff pressures, shifting consumer demand, and the electric-vehicle transition, forcing every major automaker to rethink where it builds cars and with whom. Stellantis (STLA) appears to have made up its mind. Stellantis expands manufacturing in China Stellantis and Chinese state-owned Dongfeng Group have agreed to expand what is already one of the auto industry’s longest-running partnerships. – The two companies, which have worked together for more than three decades, signed a strategic cooperation agreement to produce Peugeot and Jeep-branded electric vehicles at a factory in Wuhan. – Production is expected to begin in 2027, with two new Peugeot battery electric vehicles and two Jeep off-road electric models initially coming off the line. – The Peugeot models will draw from design concepts shown at the 2026 Beijing Auto Show.
Both the Peugeot and Jeep vehicles are intended for Chinese buyers as well as export markets worldwide. – The total investment tied to the project is more than eight billion Chinese yuan, or roughly one billion euros. Stellantis is expected to contribute around 130 million euros of that figure. The two companies also signed a non-binding memorandum of understanding to explore even broader cooperation down the road, covering shared scale, research, and development resources.