Stellantis to build Jeeps, Peugeots in China for export

Stellantis and Dongfeng have confirmed their joint venture factory will begin producing “new energy” Peugeot and Jeep models from 2027 both for China and “export to global markets”.

In a statement released over the weekend, the automakers announced the existing Dongfeng Peugeot-Citroen joint venture plant in Wuhan will produce two “Peugeot-branded” models from 2027. The design of these two vehicles will be based on the Concept 6 and Concept 8 SUV revealed at the recent Beijing motor show.

Both concept cars are on the large side, and if exported back to Europe would help the brand flesh out the top-end of its lineup, which currently tops out with the 4.79m-long 5008 SUV.

The Wuhan factory will also produce two “Jeep-branded” vehicles from 2027. It’s unknown if Wuhan will manufacture existing Jeep models, or something new.

We also don’t know if the two Peugeot and Jeep models confirmed in this announcement will be based on Stellantis or Dongfeng architectures. Nor have the partners indicated which global markets the new cars will be exported to. Currently Australian-market Peugeots come from Europe, while local Jeeps are sources from Europe and North America.

All four vehicles will be “new energy vehicles”, which is a China-specific phrase encompassing plug-in hybrids, range extended EVs, and pure EVs.

The partners will invest around €1 billion (A$1.6bn) to produce these four new cars, with Stellantis only contributing about €130 million (A$211 million).

Last month a report indicated Stellantis will look to focus on four key global brands (Peugeot, Fiat, Jeep and Ram), with its other marques being relegated to regional roles.

This announcement is Jeep’s third crack at local manufacturing in China. In the early- to mid-80s, the brand setup the Beijing Jeep joint venture with Beijing Automobile Works (BAW), allowing it to produce cars in a country that was slowly opening up to world and beginning its embrace of capitalism.

Like Volkswagen with its partner SAIC, Jeep was one of the first foreign automakers in China, and these early entrants enjoyed much success with the emerging upper middle and entrepreneurial classes.

In time Beijing Jeep added some locally developed models. The roster grew to include Mercedes-Benz, Chrysler and Mitsubishi vehicles after the 1998 “merger of equals” between Daimler and Chrysler.

After Daimler jettisoned Chrysler to private equity firm Cerberus in 2007, the German automaker kept Beijing Jeep — since renamed Beijing Benz — for itself. Chinese production of Jeep, Chrysler and Mitsubishi models largely ceased around this time.

Partially due to the global financial crisis of the late 2000s, Chrysler filed for Chapter 11 bankruptcy protection and was slowly subsumed by Fiat. 

Recognising the need to increase its presence in China, Fiat formed a partnership with GAC in 2010. GAC Fiat began production of the Fiat Viaggio, a rebadged Dodge Dart, in 2012, but it wasn’t until 2016 that local production of Jeep vehicles began again, including the Commander (above).

Fiat Chrysler merged with PSA Peugeot Citroen in 2021 to form Stellantis. A year later the automaker closed the GAC FCA joint venture due years of losses, and Jeep reverted to be an import-only brand.

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