Automotive giants Stellantis and Dongfeng Group have signed a non-binding Memorandum of Understanding outlining their intention to establish a new, Europe-based joint venture. The partnership marks a significant expansion of their 34-year relationship, aiming to integrate shared sales, distribution, manufacturing, purchasing, and engineering activities specifically targeting the European new energy vehicle (NEV) market.
Under the contemplated structure, the new entity will be a Stellantis-led joint venture with a 51/49 ownership split. The primary operational objective of the company will be managing the sales and distribution of Dongfeng’s premium electric brand, Voyah, in designated European markets. By doing so, Dongfeng will be able to leverage the commercial footprint, extensive dealership network, and established after-sales infrastructure of Stellantis across the continent. Simultaneously, the joint venture will establish shared purchasing and engineering hubs designed to integrate Dongfeng’s highly competitive Chinese NEV manufacturing ecosystem.
A central component of the strategic plan includes exploring local production capabilities to comply with evolving regional regulations. The partners intend to localize the manufacturing of certain Dongfeng NEV models at the Stellantis assembly plant in Rennes, France. This localized production strategy is explicitly designed to meet strict “Made-in-Europe” regulatory requirements, allowing the vehicles to navigate regional trade frameworks and consumer subsidy qualifications.
Executives from both companies expressed confidence that the cross-border alignment will benefit global operations. Stellantis CEO Antonio Filosa noted that the alliance expands their international footprint, providing consumers with a broader selection of competitive products and pricing by blending global market scale with advanced electric technology. Dongfeng Chairman Qing Yang added that the joint venture aligns with international expansion objectives, allowing the Chinese automaker to accelerate its global reach while supporting the ongoing strategic shifts of Stellantis.
The European initiative follows a separate announcement earlier this month regarding the reinforcement of their existing China-based partnership, Dongfeng Peugeot Citroën Automobile (DPCA). That venture, which has manufactured over 6.5 million vehicles historically, is scheduled to begin producing all-new electric Peugeot and Jeep models at its Wuhan facility starting in 2027 for both domestic consumption and international export. The final implementation of the newly proposed European joint venture remains subject to the negotiation of definitive operational agreements and customary regulatory approvals.
