Stellantis Intends To Produce Peugeot Cars In China

Stellantis plans to start making Peugeot-branded cars in China in collaboration with Dongfeng Motor, reviving a partnership that has been troubled in recent years as the Amsterdam-based carmaker continues a deep overhaul of its business.

Peugeot is unveiling two new concept cars at the Beijing Auto Show, ahead of a new line of large sedans and SUVs as part of the brand’s international growth plan, Stellantis said on Friday. The vehicles will be manufactured by Dongfeng at its Wuhan plant for the Chinese market, Stellantis said, confirming an earlier report by Bloomberg.

Peugeot sees China as key to its future strategy, brand CEO Alain Favey said in a statement.

The announcement marks a sharp shift in strategy for Peugeot, which previously pulled out of China. The brand is still trying to recover from quality problems that damaged its image in Europe and caused a steep decline in market share. The group will also export Chinese-made vehicles to Peugeot’s overseas markets, the statement said.

Bloomberg reported earlier this month that Stellantis was in talks to revive a partnership with Dongfeng that would involve joint production of cars in Europe and China. The talks focused on giving Dongfeng access to underutilized Stellantis plants in Europe, with Dongfeng in turn making select Stellantis brand cars in China, sources familiar with the situation said at the time.

Peugeot is one of four brands, along with Fiat, Ram and Jeep, that Stellantis considers key, and the company is focusing its investments on those brands, Reuters reported earlier on Friday, citing sources familiar with the matter.

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