Words: Richard Edwards
Published 16 May 2026
Stellantis and Dongfeng have signed a new strategic cooperation agreement that will see their long-standing joint venture produce Peugeot and Jeep models in China for sale worldwide, in a deal worth approximately €1 billion (NZ$1.98 billion).
Under the agreement, the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture is expected to produce four new models at its Wuhan plant from 2027: two Peugeot-branded new energy vehicles and two Jeep-branded off-road new energy vehicles, all intended for both the Chinese market and global export. In Chinese automotive industry terminology, “new energy” typically encompasses battery electric vehicles and range-extender hybrids.
The two new Peugeots are based on the Concept 6 and Concept 8 show cars unveiled at the 2026 Beijing Auto Show, previewing a rakish estate in the mould of the 508 and a new flagship SUV larger than any model Peugeot has previously produced. Stellantis has given fewer details on the Jeep models, describing them only as “off-road new-energy vehicles.” However, the models could potentially be based on platforms shared with Dongfeng’s off-road focused Mhero brand, which is already selling in Europe and strongly expected to launch in New Zealand soon.
Stellantis says it will contribute approximately €130 million (NZ$257 million) of the combined investment, which is supported by industrial policies of the Hubei province and Wuhan municipality.
The deal builds on a 34-year partnership between the two companies. DPCA has previously produced Peugeot models including the 4008, 5008 and 508 L, as well as Citroën C5 Aircross and C5 X for the Chinese market.
Peugeot CEO Alain Favey says the two new Dongfeng-based models will “test the water” of the partnership and are likely to be sold worldwide, with the brand using Dongfeng’s architecture to compete in the Chinese market. Favey acknowledges some of Dongfeng’s technology is “more advanced than what we can deliver in Europe.”
NZ distribution connections
The agreement is notable for New Zealand given the existing distribution relationships linking the brands involved. Armstrong’s Distributors, led by Simon Rutherford, handles both Peugeot and Dongfeng passenger vehicles in the New Zealand market, meaning two of the four models announced could potentially flow through a single local distributor.
Jeep is distributed in New Zealand by Ateco, which also handles the Dongfeng-owned Forthing brand locally. Whether the China-built Jeep models reach this market, and through which channel, remains to be seen.
Dongfeng also has a separate joint venture with Nissan, and is preparing to export Chinese-built Nissan models to new markets. The Frontier PHEV is strongly speculated to be the first model through that arrangement, which could have implications for New Zealand given Nissan’s established presence here.
Stellantis strategy
The announcement comes a week after Stellantis confirmed it would expand its partnership with another Chinese partner, Leapmotor, to develop and build a new Vauxhall SUV on Leapmotor’s EV architecture.
Stellantis CEO Antonio Filosa says partnerships are now central to the company’s growth strategy. “We understand that by working with a set of partners to build a roadmap of technological improvement, supply chain improvement and maybe capacity utilisation, these are really good topics to work together and create benefits,” he says.
Filosa is expected to give further details at an investor day presentation next Thursday at Stellantis’s US headquarters in Auburn Hills, Michigan, where Reuters reports he will announce plans to direct most investment towards Jeep, Ram, Fiat and Peugeot as the company’s priority brands.
