- Stellantis and Dongfeng are said to be considering a new partnership.
- This could see Dongfeng vehicles made in Europe and vice versa.
- Dongfeng could eventually takeover or invest in a European plant.
Chinese automakers are eyeing production in Europe as a way to avoid hefty tariffs. Many European automakers have excess capacity, so it sounds like a match made in heaven. However, it could end up being a deal with the devil that comes at the expense of their own sales.
More: Stellantis Hands Chinese EV Maker A Factory To Bypass EU Import Tariffs
Stellantis appears to be dealing with this conundrum as Bloomberg is reporting the company is considering a partnership with Dongfeng. Details are hazy, but sources have told the publication the Chinese firm could gain access to underutilized Stellantis plants in Europe, while Dongfeng could build Stellantis vehicles in China.
Discussions appear to be relatively advanced as Dongfeng officials reportedly visited sites in Germany and Italy. The publication also said the Chinese firm could potentially acquire or invest in “one or more European plants at a later stage.”
There is no indication yet which facilities could be involved, but Bloomberg pointed out that Alfa Romeo and Maserati have been struggling. Italian production has fallen and anger there resulted in strikes in 2024. At the time, the Associated Press said Stellantis and its predecessors had cut Italian production by nearly 70% over the past 17 years.
It remains unclear if a deal will be struck, but Stellantis has reportedly been having discussions with a number of Chinese companies including Xpeng and Xiaomi. The automaker also has a successful relationship with Leapmotor, which could explain the optimism for additional deals.
It’s also worth mentioning that Dongfeng has a long relationship with PSA, which is now part of Stellantis. This partnership spawned Dongfeng Peugeot-Citroën Automobile, although the French brands are a small player in China.
Stellantis told the publication, “As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics, always with the ultimate aim of providing customers with the best mobility choices.”
