Stellantis is reviving its Chinese manufacturing footprint through a new agreement with partner Dongfeng to build Peugeot and Jeep electric vehicles at the Wuhan-based DPCA plant beginning in 2027. The deal carries a combined investment of roughly €1 billion ($1.07 billion), with Stellantis contributing about €130 million ($139 million). Neither brand will reach the US market under these plans — federal law effectively closes the door before it opens.
What's being built
Two Peugeot new-energy vehicles (NEVs — battery-electric or plug-in hybrid models) are based on the Concept 6 and Concept 8 show cars unveiled at the 2026 Beijing Auto Show. The Concept 6 previews a large sedan or wagon in the spirit of the Peugeot 508; the Concept 8 is a flagship SUV described as the largest vehicle Peugeot has ever planned. Two Jeep off-road NEVs round out the four-model lineup, though drivetrain details, battery suppliers, and range figures have not been disclosed.
Stellantis says all four models are intended for global export alongside the Chinese domestic market, but no specific destination regions have been named.
Why the US is out of the picture
The Inflation Reduction Act's Section 30D EV tax credit — worth up to $7,500 — bars vehicles assembled in China and those using battery components or critical minerals from Foreign Entities of Concern (FEOC), which includes major Chinese suppliers. On top of that, Section 301 tariffs currently impose a 100% duty on Chinese-origin passenger vehicles. CEO Antonio Filosa has publicly stated that Chinese-built EVs should not enter the US market, aligning Stellantis's public position with the regulatory reality.
The Wuhan plant has history: the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture previously produced the Peugeot 4008, 5008, and 508 L for the Chinese market, but sales collapsed across the 2015–2025 period. This agreement represents a strategic reset, not a continuation of that era. Notably, Jeep exited China entirely in 2022 when its separate GAC joint venture ended, so these new models would mark a full re-entry.
Stellantis's broader bet
Filosa is building a two-track international strategy: use the Dongfeng partnership to manufacture Western-branded EVs cost-efficiently in China for export to markets where tariffs don't apply, while routing European EV expansion through Leapmotor — the Chinese brand in which Stellantis holds a stake and assembles vehicles in Poland. Reuters reports that near-term Stellantis investment will concentrate on Jeep, Ram, Fiat, and Peugeot.
Production is targeted for 2027, subject to regulatory approvals and final implementation agreements. No pricing, dealer network plans, or export-volume targets have been announced.