PARIS, May 21 (Xinhua Silk Road) -- Chinese automaker Dongfeng has reached a series of strategic cooperation agreements with Stellantis in both Europe and China, marking a significant expansion of their historic partnership, according to a recent joint statement released by the two companies.
In a statement issued on Wednesday, Dongfeng and Stellantis said they intend to establish a Europe-based joint venture dedicated to the "sales, distribution, manufacturing, purchasing and engineering" of Dongfeng's new energy vehicles (NEVs), initially targeting selected European markets. Under the proposed structure, Stellantis would hold a 51 percent stake in the joint venture, while Dongfeng would own the remaining 49 percent, giving the European automaker operational control.
The two companies said the cooperation could include the production of Dongfeng's Voyah-branded premium NEV models at Stellantis' Rennes plant in France, "in line with European regulations and Made-in-Europe requirements." The project is expected to support the expansion of Dongfeng's NEV business in Europe by leveraging Stellantis' industrial footprint and commercial network across the region.
Dongfeng chairman Yang Qing said the strengthened partnership aligns closely with China's policies of high-level opening-up, dual circulation and the stabilization of foreign investment, trade and employment, and also meets both shareholders' development needs.
"Through coordination in technology, branding and global markets, it will unlock greater value from the joint venture, accelerate Dongfeng's global expansion, support Stellantis' global strategic shift and strengthen its presence in China," Yang said.
Stellantis CEO Antonio Filosa also welcomed the move, saying the partnership would allow both companies to provide customers with "an even greater choice of competitive products and pricing," while combining Stellantis' global industrial capabilities with Dongfeng's access to China's rapidly developing NEV ecosystem.
Industry analysts said the European manufacturing plan could help Dongfeng mitigate the impact of additional EU tariffs on Chinese-made electric vehicle imports through localized production.
The announcement is also expected to be welcomed by labor unions at Stellantis' Rennes facility, as the arrival of a new vehicle program could help secure the plant's long-term future as well as employment. Until now, the site had largely depended on the commercial performance of the Citroën C5 Aircross.
As French media reported, the Rennes plant still has significant unused production capacity, having produced around 65,000 vehicles last year, while its annual capacity could reach 140,000 units.
It is worth noting that the above plans came just five days after the two companies unveiled another major cooperation project based on the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture in Wuhan, involving the production of several Peugeot-branded and Jeep-branded NEVs.
(Contributed by Li Wenxin, edited by Tian Shenyoujia with Xinhua Silk Road, tianshenyoga0524@163.com)
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