BUSINESS

Stellantis, Dongfeng Look to Revive China Venture

Published: May. 18, 2026 5:12 p.m. GMT+8

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Stellantis NV and Dongfeng Motor Group Co. Ltd. have agreed to revive their struggling Chinese joint venture with a plan to locally produce new Peugeot and Jeep models for global markets.

The strategic cooperation agreement, announced on Friday, includes a major capital injection to rescue Dongfeng Peugeot Citroen Automobile Co. Ltd. (DPCA). Three state-owned enterprises will invest more than 8 billion yuan ($1.1 billion), while Stellantis will contribute about 1.03 billion yuan.

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What Happened When

1992：: Dongfeng Peugeot Citroen Automobile Co. Ltd. (DPCA) was established.

2015：: DPCA's annual vehicle sales peaked at around 700,000 units.

2020：: DPCA's annual vehicle sales plummeted to 50,000 units.

2021：: Stellantis NV was formed from the merger of Fiat Chrysler and PSA Group.

2022：: Stellantis began implementing an asset-light business model in China, slashing local capacity.

2025：: Stellantis' new management visited Dongfeng multiple times to secure supply chain and technology support; DPCA sold just 51,500 vehicles, a 24.6% year-on-year decline.