The Stellantis-Dongfeng joint venture is intended to sell premium Chinese Voyah new energy vehicles in selected European markets. © ReutersPARIS/MILAN (Reuters) -- Stellantis and China's Dongfeng plan to form a joint venture in Europe, including potential production at a French plant, the companies said on Wednesday.In the latest early insight into the French-Italian automaker's strategy, the two companies signed a preliminary agreement to set up a JV --owned 51% by Stellantis and 49% by Dongfeng -- that will cover sales and distribution, manufacturing, purchasing and engineering activities focused on Dongfeng's new energy vehicles (NEVs).The venture will seek to sell Dongfeng's premium Voyah-branded NEVs in some European markets.The move, which Reuters reported earlier, builds on a deal unveiled last week under which Dongfeng will make Jeep and Peugeot brand cars in China.Stellantis is due to hold a capital markets day on Thursday, where CEO Antonio Filosa is expected to pitch investors on plans to regain market share in North America and Europe.
The partners plan to explore local production of Dongfeng models at Stellantis' Rennes plant in France, in compliance with European Union requirements.The move would add to recent Stellantis announcements about shared production in Spain with its other Chinese partner, Leapmotor9863.HK, as well as plans to launch manufacturing in Italy of stripped-down, cost-efficient small e-cars. Stellantis is seeking to increase production and fill its underused assembly lines in Europe.The agreement also aligns with Dongfeng's global ambitions. The state-owned Chinese carmaker is targeting annual sales of about 5 million vehicles by 2030, with more than 40% from outside China.Dongfeng still owns a stake of just over 1% in Stellantis, having been a longtime investor and partner with Peugeot maker PSA, which in 2021 merged with Fiat Chrysler to form Stellantis.
