Stellantis and Dongfeng reached a major deal to restart Jeep production in China for global exports.
Stellantis and Chinese auto giant Dongfeng Motor Corporation have officially finalized a $1.18 billion agreement that will bring Jeep production back to China. But unlike previous ventures, these new vehicles won’t primarily target Chinese dealerships. Instead, the SUVs built there will be exported worldwide beginning in 2027.
Jeep’s history in China has been anything but smooth. After Stellantis split from its former joint-venture partner GAC Group in 2022, many believed the American brand had effectively abandoned the Chinese market for good.
That clearly wasn’t the case.
Under the new arrangement, Stellantis will work with longtime partner Dongfeng through the existing DPCA joint venture — short for Dongfeng Peugeot Citroën Automobile. Production will take place at the company’s factory in Wuhan, where two all-new Jeep models are scheduled to enter production.
Both vehicles will reportedly use “new energy” powertrains, a phrase commonly used in China to describe electrified vehicles. That likely means buyers can expect either fully electric SUVs or range-extended hybrid models.
Unlike previous China-built Jeeps, these new models are being developed specifically for global export markets. At least for now, Stellantis reportedly has no plans to sell them domestically inside China.
At the same Wuhan facility, two new Peugeot models will also enter production. Those vehicles are expected to be sold both in China and internationally. The upcoming Peugeots are said to draw inspiration from the futuristic Concept 6 and Concept 8 show cars recently displayed at the Beijing Auto Show.
The auto industry power balance has changed dramatically over the past decade.
A few years ago, European automakers were bringing technology into China while collecting profits from the rapidly growing market. Today, the situation has flipped almost completely.
According to reports, Dongfeng and state-backed investment funds from Hubei province will contribute roughly 80% of the project’s financing. Stellantis is expected to provide only about 13% of the funding directly.
But the real value for Stellantis may not be the factory itself — it’s the technology.
The future Wuhan-built Jeeps will reportedly ride on platforms and electronic architectures developed by Dongfeng, including hardware connected to the company’s high-tech M-Hero sub-brand, also known as Mengshi.
That includes the advanced M-Tech platform featuring technologies such as adaptive air suspension with nearly 6 inches of height adjustment and even a “crab walk” driving mode similar to systems seen on premium electric off-roaders.
In other words, future Jeep SUVs sold globally may end up using Chinese-developed chassis technology underneath classic Jeep styling.
Back in 2022, when the partnership with GAC collapsed, Stellantis CEO Carlos Tavares spoke about moving toward a “light asset” strategy in China.
Now that strategy appears to mean something very different.
Stellantis isn’t simply paying for manufacturing space. The company is effectively buying access to China’s EV battery supply chain, software development, and advanced vehicle electronics.
The division of labor is becoming increasingly clear:
Profits from the future Jeep models are still expected to be split evenly between the partners. And while Stellantis may be investing less cash upfront, it still brings something Chinese automakers continue to chase globally — an internationally recognized brand with decades of heritage and worldwide appeal.
For Jeep, China is no longer just a sales market. It’s becoming the company’s future production and technology hub for the next generation of electrified SUVs.