Search
The brand is still trying to recover from quality issues that tarnished its image in Europe
Share
[PARIS] Stellantis plans to start producing cars in China under the Peugeot brand with Dongfeng Motor, reviving a partnership that had run into trouble in past years as the Amsterdam-based auto manufacturer moves ahead with a deep overhaul of operations.
Peugeot is presenting two new concept cars at the Beijing auto show ahead of a new lineup of large sedans and sport utility vehicles as part of the brand’s international growth plan, Stellantis said on Friday (Apr 24). The vehicles will be produced by Dongfeng at its Wuhan plant for the Chinese market, Stellantis said, confirming an earlier report by Bloomberg News.
Peugeot views China as key for its strategy going forward, brand CEO Alain Favey said in the statement.
The announcement marks a stark shift in strategy for Peugeot, which had previously pulled back from China. The brand is still trying to recover from quality issues that tarnished its image in Europe and sparked steep market-share declines. The group will also export China-built vehicles to Peugeot’s overseas markets, according to the statement.
Bloomberg reported earlier this month that Stellantis was in discussions to revive a partnership with Dongfeng that would involve joint car production in Europe and China. The talks centred on giving Dongfeng access to underutilised Stellantis factories in Europe, with Dongfeng in turn making cars from selected Stellantis brands in China, sources familiar with the matter said at the time.
The closer cooperation rekindles a partnership that got its start in the early 1990s, when PSA Group – a predecessor to Stellantis – formed a joint venture with Dongfeng to access the growing market. In recent years, Stellantis’ sales and output have shrunk dramatically and the automaker has struggled to gain traction in China. This had prompted former group CEO Carlos Tavares to loosen ties with Dongfeng and look for another partner.
SEE ALSO
Get the insights delivered to your inbox.
Peugeot is one of four brands, alongside Fiat, Ram and Jeep, that Stellantis views as core, and the company is focusing its investments on the brands, Reuters reported earlier on Friday, citing sources familiar with the matter. A media representative for Stellantis said the group’s 14 brands have a mix of “global scale with deep local roots” and declined to elaborate further on the report. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
Inside Indonesia’s trial of Gojek co-founder: How a Google laptop deal became a multitrillion-rupiah case
No prosecution for Seatrium over Brazilian corruption offences, High Court approves US$110 million penalty
S$8m director pay, Iran war risks among issues raised by Sheng Siong investors ahead of AGM
As war unsettles the Gulf, wealthy families reassess where to place capital and relocate
Popular Topics
Banks & Currency News
Singapore Companies News
Singapore Economy News
Latest REITs News
Property News
MDDI (P) 046/10/2024. Published by SPH Media Limited, Co. Regn. No. 202120748H. Copyright © 2026 SPH Media Limited. All rights reserved.
