Stellantis is expanding its partnership with Chinese automaker Dongfeng to produce four electrified models — two from Jeep and two from Peugeot — at its Wuhan plant beginning in 2027. This move marks the third time Jeep has manufactured vehicles in China over the past 40 years, now focusing on electric and hybrid technology.
Renewed Collaboration with Dongfeng and Production Plans
Stellantis and Dongfeng have a long-standing relationship that dates back to the early 1990s, originally rooted in PSA’s presence in China. Now, under the combined Dongfeng Stellantis Automotive Technology joint venture, production will start on two Jeep and two Peugeot electric or plug-in hybrid models. These vehicles aim to benefit from China’s manufacturing efficiencies despite existing tariffs on electric cars exported from China to Europe. A cap of 350,000 hybrid units for Chinese exports to Europe is also still to be finalized.
Jeep’s Historical Presence in China
Jeep’s history in China stretches back to 1985, when American Motors Corporation partnered with Beijing Automobile Works to produce the Cherokee locally for over two decades. This arrangement ended in 2008 following corporate changes and dissolutions. Jeep returned in 2014 through a different joint venture with GAC, offering models like the Cherokee, Grand Commander, Compass, and Renegade. However, rapid electrification in China led to challenges for that venture, which was closed in 2022. Since then, Jeep models sold in China have been imported, including the Grand Cherokee, Wrangler, and Gladiator.
Advanced Driver Assistance Systems Powered by AI
The new vehicles will feature intelligent driver assistance systems developed through a partnership with AI company Momenta. These systems will offer advanced urban driving assistance, autonomous parking, smart lane selection, and tight-space maneuvering capabilities. Stellantis plans to equip both the Chinese market and other global markets, including Europe, with these AI-powered features, following a strategy similar to BMW’s partnership with Momenta set for mid-2025 but extending beyond China.
Future Jeep Electric SUV and Global Availability
The first Jeep product from this new collaboration is expected in 2028: a midsize SUV designed jointly by Jeep and Dongfeng. This SUV will feature plug-in hybrid technology capable of working as an extended-range electric vehicle or a conventional plug-in hybrid depending on conditions, somewhat like Toyota’s current hybrid system. Additionally, some Jeep models will adopt Stellantis’s new STLA One platform, which debuted in May 2024 and supports sub-4.3-meter vehicles for global sale.
However, these China-made Jeep and Peugeot models are unlikely to be sold in the United States. New restrictions on software linked to the Chinese government, effective from 2027, along with hardware import restrictions starting in 2030, will limit market access. Combined with existing tariffs, this positions these vehicles mainly for Asia, Europe, and other regions.
Source: motor.es