Stellantis N.V. STLA and Dongfeng Motor Group have signed a strategic cooperation agreement to deepen their 34-year partnership by jointly producing Peugeot and Jeep vehicles in China for both domestic and international markets. The companies also entered into a non-binding strategic memorandum of understanding to expand collaboration through shared scale, industry expertise and research and development capabilities.
As part of the strategic cooperation agreement and pending regulatory approvals and final implementation terms, the Dongfeng Peugeot Citroën Automobile Co., Ltd. (“DPCA”) joint venture is expected to begin manufacturing two new Peugeot-branded energy vehicles at its Wuhan facility from 2027. The models will reflect the latest Peugeot design language showcased in the brand’s recently unveiled concept cars.
Peugeot introduced the concepts in April as part of a renewed effort by the French-Italian automaker to strengthen its position in China’s auto market following years of declining sales and restructuring. The vehicles will target both Chinese consumers and overseas markets under Peugeot’s broader global expansion strategy. The agreement also outlines plans for DPCA’s Wuhan plant to manufacture two Jeep-branded off-road electric vehicles for global markets beginning in 2027.
Supported by automotive industry incentives from Hubei province and Wuhan city authorities, the project represents a combined investment exceeding 8 billion yuan (roughly 1 billion euros) and Stellantis is expected to invest around 130 million euros.
Building on more than three decades of partnership and automotive experience, Stellantis and Dongfeng intend to capitalize on their combined strengths to launch new vehicles featuring advanced EV technologies. The project remains subject to final implementation agreements, operational and financial terms, and customary approvals.
STLA’s Zacks Rank & Key Picks
Stellantis currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Polaris PII, 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 PII’s 2026 sales and earnings implies year-over-year growth of 2.3% and 17,300%, respectively. EPS estimates for 2026 and 2027 have improved 6 cents and 8 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. EPS estimates for 2026 and 2027 have 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. EPS estimates for 2026 and 2027 have improved 42 cents and 22 cents, respectively, over the past 30 days.
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