Stellantis N.V. STLA and Dongfeng Motor Group recently signed a non-binding Memorandum of Understanding (MoU) to deepen their 34-year partnership. The companies aim to establish a Europe-based joint venture focused on the sales, distribution, manufacturing, procurement and engineering of Dongfeng’s new energy vehicles (NEVs), initially targeting selected European markets.
The proposed venture would be structured as a 51/49 partnership led by Stellantis. The new entity would oversee the sale and distribution of Dongfeng’s premium Voyah-branded NEVs in Europe while benefiting from Stellantis’ established dealer network and after-sales capabilities. It would also manage joint purchasing and engineering operations by leveraging Dongfeng’s strong position within China’s competitive NEV ecosystem. The partners are additionally considering manufacturing Dongfeng NEVs at Stellantis’ Rennes facility in France to align with European regulations and “Made-in-Europe” requirements.
Earlier this month, Stellantis and Dongfeng also announced plans to strengthen their long-running Dongfeng Peugeot Citroën Automobile Co., Ltd. (DPCA) partnership. The Wuhan plant operated by DPCA is set to manufacture new Peugeot- and Jeep-branded NEVs for both China and export markets beginning in 2027. Since its formation, the joint venture has produced more than 6.5 million Peugeot and Citroën vehicles for domestic and international markets.
The execution of the proposed initiatives remains subject to final implementation agreements, operational and financial terms, regulatory approvals and other customary conditions.
In separate news, Stellantis signed another non-binding MoU with Jaguar Land Rover to explore collaboration opportunities in product development within the United States. The companies will evaluate potential synergies in product and technology development by utilizing their complementary strengths. Any future transaction stemming from these discussions would depend on definitive agreements and standard closing conditions.
Stellantis also unveiled its new affordable electric vehicle initiative known as the E-Car project, with production expected to begin in 2028. The “E” represents European, Emotion, Electric and Environmental friendliness. The project has received recognition from the European Commission for its potential to support European manufacturing jobs and accelerate the adoption of fully electric vehicles for urban transportation.
Designed as a compact, affordable and fully electric vehicle, the E-Car aims to revive Europe’s shrinking small-car segment while reflecting Stellantis’ broader mission of providing accessible mobility solutions. Production has been assigned to the Pomigliano plant in Italy, a site known for manufacturing iconic and budget-friendly vehicles such as the Fiat Panda. The E-Car lineup will incorporate advanced design and battery-electric technologies developed alongside selected partners to improve affordability and shorten development timelines.
STLA’s Zacks Rank & Key Picks
Stellantis currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELHY, Douglas Dynamics, Inc. PLOW and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 76.1% and 36.3%, respectively. The EPS estimate for 2026 and has improved 34 cents and 42 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2026 sales and earnings implies year-over-year growth of 6.6% and 28.2%, respectively. The EPS estimate for 2026 and 2027 has improved 42 cents and 22 cents, respectively, over the past 30 days.
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This article originally published on Zacks Investment Research (zacks.com).