Stellantis plans to start production of Peugeot-branded cars in China in cooperation with Dongfeng Motor, reviving a partnership that has been troubled in recent years, while the Amsterdam-based carmaker continues to overhaul its operations.
Peugeot is unveiling two new concept cars at the Beijing Motor Show, ahead of a new line of large sedans and SUVs as part of the brand’s international growth plan, Stellantis said on Friday. The vehicles will be manufactured by Dongfeng at its Wuhan plant for the Chinese market, Stellantis said, confirming an earlier report by Bloomberg.
Peugeot considers China to be key to its strategy in the future, brand CEO Alen Favej said in a statement Autoblog.rs.
The announcement marks a sharp shift in strategy for Peugeot, which has previously pulled out of China. The brand is still trying to recover from quality problems that damaged its image in Europe and caused a sharp drop in market share. The group will also export vehicles manufactured in China to Peugeot’s overseas markets, according to the announcement.
Bloomberg reported earlier this month that Stellantis was in talks to revive a partnership with Dongfeng that would include joint production of cars in Europe and China. The talks focused on giving Dongfeng access to underutilized Stellantis factories in Europe, with Dongfeng in turn making select Stellantis brand cars in China, sources familiar with the situation said at the time.
Peugeot is one of four brands, along with Fiat, Ram and Jeep, that Stellantis considers key, and the company is focusing its investments on those brands, Reuters reported earlier on Friday, citing sources familiar with the matter.
