The companies signed a non-binding Memorandum of Understanding to establish a Europe-based joint venture focused on sales and distribution of new energy vehicles (NEVs).DetailsThe plan outlines a Europe-based JV, majority-led 51/49 by Stellantis, covering sales, distribution, manufacturing, purchasing, and engineering of Dongfeng's NEVs, initially targeting selected European markets.The JV would launch Dongfeng's Voyah premium EVs across Europe, leveraging Stellantis' retail and after-sales network, while also coordinating sourcing and engineering with Dongfeng's China-based NEV capabilities.The partners are also considering local production at Stellantis' Rennes plant in France, aligned with EU regulatory and "Made-in-Europe" requirements.The collaboration is expected to tap into Dongfeng's competitive NEV ecosystem, aligning with both companies' strategic goals.Earlier this month, Stellantis and Dongfeng announced an expanded collaboration under their China-based DPCA joint venture (Dongfeng Peugeot Citroën Automobile Co., Ltd.).The venture will manufacture new Peugeot and Jeep-branded NEVs at the Wuhan plant, with production serving both the Chinese market and export markets globally, beginning in 2027.Expansion Plans In EuropeOn Tuesday, Stellantis plans to launch a new affordable compact electric vehicle project in Europe, with production scheduled to begin in 2028 at its Pomigliano plant in Italy.The automaker said the "E-Car" initiative aims to revive Europe's shrinking small-car segment with low-cost, fully electric city vehicles designed and built in Europe.CEO Antonio Filosa said customers are demanding affordable and environmentally friendly compact cars, while Stellantis added the models will use advanced BEV technologies developed with partners to improve affordability and accelerate time-to-market.STLA Technical Outlook: Key Support, Resistance And MomentumStellantis has experienced a challenging 12-month period, with shares down 31.63%. Currently, the stock is trading 2.3% below its 20-day simple moving average (SMA) of $7.63, while it sits 0.2% above its 50-day SMA of $7.44. The moving average convergence divergence (MACD) is below its signal line, indicating that momentum is fading, suggesting that the stock may struggle to maintain upward pressure unless it can reclaim that baseline.