Stellantis to Produce Jeeps in China for Global Markets

Stellantis will resume production of Jeep-brand vehicles in China next year with a view to exporting them to global markets, following a four-year hiatus from manufacturing operations in the Asian country.

According to the new strategy announced by the multinational automaker, it will develop two electrified Jeep models in partnership with Dongfeng Motor Group, leveraging its Chinese partner’s technology and production capacity.

Jeep’s new strategy, which includes fully electric and plug-in hybrid models, also aims to boost local sales in China, which have plummeted in recent years.

Jeep’s relaunch underscores Stellantis’ efforts to leverage its alliance with Dongfeng to access technology and utilize its excess production capacity as a global export hub.

Stellantis and Dongfeng unveiled the plan for Jeep while presenting an update on the independent joint venture in the central Chinese city of Wuhan to implement joint electric vehicle development and production plans agreed upon in May for the Jeep and Peugeot brands.

The new company, Dongfeng Stellantis Automotive Technology Co., with an investment of $1.2 billion, will develop two Jeep models and two Peugeot models, according to Stellantis CEO Antonio Filosa during a video conference.

“These vehicles are expected to be manufactured by DPCA at its Wuhan plant starting in 2027 and distributed globally through Stellantis’ international sales and distribution network,” Filosa said, referring to Dongfeng Peugeot Citroën Automobile, a joint venture that the PSA Group formed with Dongfeng in 1992 in Wuhan to produce and market gasoline-powered vehicles for the Peugeot and Citroën brands.

Stellantis took control of DPCA after it was formed in 2021 through the merger of PSA and Fiat Chrysler Automobiles.

DCPA will produce the new Jeep and Peugeot models, while Dongfeng Stellantis Automotive Technology Co. will be responsible for their development and marketing.

The development of the four new models—electric and plug-in hybrid—will be handled by Dongfeng, which will lead R&D in key electrification and smart vehicle technologies.