Once ignoring China, Stellantis is now chasing after it to curry favor.
In the past few years, in the face of the continuous downturn of joint - venture brands such as Peugeot Citroën and Jeep in the Chinese market, we have criticized the Stellantis Group on multiple occasions for its lack of sufficient attention and investment in this largest global automotive market.
This neglect is not unfounded: In 2024, the sales volume of French - made cars in China plummeted to 68,000 units, far from the nearly one million units at its peak. Only Dongfeng Peugeot Citroën Automobile Co., Ltd. (DPCA) is struggling to hold on in the once - prosperous joint - venture landscape. In the first half of 2025, the sales volume of French - made cars was less than 29,000 units, accounting for only 0.3% of the market share.
The stubbornness of French design and the niche nature of American off - road vehicles have become fatal weaknesses that prevent them from keeping up with market changes. Peugeot can only maintain a monthly sales volume of over 500 units with its 408 model. Citroën has only two models on sale, and Jeep's 800,000 owners are facing difficulties in vehicle repairs due to the bankruptcy of GAC Fiat Chrysler.
More importantly, its electrification transformation has seriously lagged behind. The sales of its electric vehicles account for less than 3%. Models such as the Peugeot e - 2008 have been snubbed by consumers due to short battery life and weak intelligence, and the technological gap with Chinese brands has become increasingly obvious.
The asset - light model implemented by the former CEO, Carlos Tavares, was actually a contraction strategy, which led to the shutdown of GAC Fiat Chrysler and the withdrawal of capital from Changan PSA. The continuous shrinkage of the sales channels has exposed its cultural gap with the Chinese market. While local brands like BYD have seized the market with precise product definitions and rapid iterations, Stellantis' delayed decision - making has caused it to miss opportunities in the new - energy vehicle market.
At the 2022 Paris Motor Show, Carlos Tavares' arrogant remark of "not building factories in China" still rings in our ears. This passive transformation is difficult to reverse the decline. Stellantis' presence in the Chinese market has been continuously weakening. Even if the new management adjusts the structure and repairs cooperation, it is difficult to hide the deep - seated doubts from the outside world about whether it has strategically abandoned the Chinese market.
However, who would have thought that a series of recent strategic moves by the Stellantis Group clearly indicate that it does not neglect China. Instead, it is re - engaging in a new and more strategic way. It has shifted from simply relying on sales in the Chinese market in the past to deeply relying on the global competitiveness of Chinese forces today.
The Bold Choice of "Having It All"
This situation first emerged in October 2023 when the Stellantis Group planned to invest approximately 1.5 billion euros to acquire about 20% of the equity in Leapmotor. In addition, the two parties will jointly establish a joint - venture company named "Leapmotor International" with a share ratio of 51% and 49% respectively.
Two years later, according to the plan of both parties, starting from 2026, Stellantis will use its factory in Zaragoza, Spain, to produce Leapmotor models. This not only means that a Chinese - brand vehicle will be mass - produced in a mainstream European automotive factory for the first time but also marks that Stellantis has begun to directly introduce China's electric - vehicle platform technology and manufacturing processes into its global production system.
The "Chinese speed" demonstrated by Leapmotor, which achieved a production volume of one million units in 343 days, is exactly the competitiveness that Stellantis urgently needs in the fierce market competition. The "optimized design based on the feedback from Stellantis' European R & D center" revealed by Xin Tianshu, the CEO of Leapmotor International, further reflects the in - depth cooperation model of Sino - European technological integration.
Meanwhile, the cooperation between Stellantis and Dongfeng Motor has been further deepened. People may think that this is about Jeep using the technology platforms of Mengshi or Voyah recently, but in fact, it happened earlier in another joint - venture company with Dongfeng that people may have forgotten.
On March 25 this year, with the support of the shareholders of Dongfeng Group and the Stellantis Group, DPCA's strategy of integrating into Dongfeng's new - energy business was implemented, and it officially launched its independent new - energy vehicle brand, "HEDMOS". It is trying to transform with a differentiated positioning of "Chinese electric power + French driving control".
Then, in recent days, there has been much talk about the two parties' plan to jointly develop new hardcore off - road vehicles for the Jeep brand based on the technology of Dongfeng's Voyah and Mengshi brands. This means that the classic Jeep brand will use the power system, intelligent cockpit, and assisted - driving technology of a Chinese enterprise for the first time.
This cooperation goes far beyond traditional localization adaptation. Instead, it entrusts the R & D of core technologies to Chinese partners. Considering Dongfeng's accumulation in hardcore off - road platforms (such as Mengshi) and electrification technology, Stellantis is actually leveraging China's mature solutions to quickly make up for its technological shortcomings in the new - energy off - road field.
Stellantis' dependence on Chinese forces is not only reflected in the vehicle - manufacturing field but also in the forefront of intelligent technology. Recently, Stellantis signed a memorandum of understanding with Pony.ai, planning to combine Pony.ai's autonomous - driving software with Stellantis' pure - electric medium - sized van platform and promote it in Europe starting from 2026.
It is worth noting that Pony.ai, as a leading enterprise in China's autonomous - driving field, has had its technological strength recognized globally. Stellantis' choice to cooperate with a Chinese autonomous - driving company instead of similar European or American enterprises fully shows that in the intelligent technology race, Chinese forces have global competitiveness.
Actually, as early as December last year, CATL and the Stellantis Group jointly announced that they would jointly establish a joint - venture company with a 50 - 50 shareholding ratio and plan to build a large - scale lithium - iron - phosphate battery factory in Zaragoza, Spain. The total investment in this factory is expected to be as high as 4.1 billion euros, and it is planned to be officially put into production by the end of 2026, with an expected annual production capacity of 50 GWh.
From producing Chinese - designed electric vehicles in a Spanish factory, to the Jeep brand using a Chinese technology platform, and then to deploying a Chinese autonomous - driving solution in the European market, it can be said that Stellantis is building a strategic layout that fully depends on Chinese innovative forces. In the situation of a slightly lagging electrification transformation, it aims to overtake on curves through cooperation with China's most cutting - edge enterprises.
Behind Stellantis' increasing dependence on Chinese forces is a microcosm of the profound restructuring of the global automotive industry landscape. On the one hand, China has formed significant advantages in the electric - vehicle industry chain, intelligent technology application, and manufacturing cost control. On the other hand, the strict emission regulations and fierce competitive environment in the European market force traditional automakers to transform quickly.
Stellantis' decision - makers clearly recognize that instead of conducting all independent R & D and potentially missing market opportunities, it is better to open up cooperation and integrate the world's best resources. At this time, Chinese forces are not only a synonym for cost advantages but also a guarantee of technological advancement and commercialization speed.
Leapmotor's industry record of reaching one million units in production volume in 343 days, Dongfeng's mature new - energy off - road platform, and Pony.ai's autonomous - driving algorithm verified on China's complex road conditions are exactly the ammunition that Stellantis needs in global competition.
"Repairing" the Relationship with China
In July last year, the official announcement by the Changsha court of the bankruptcy of the GAC - Fiat Chrysler joint - venture company became a symbolic footnote to Stellantis' setback in China.
This joint - venture enterprise, established in 2011, was supposed to be the key for Fiat Chrysler to open the door to the world's largest automotive market. However, it ultimately left billions of dollars in debt and abandoned factories, ending its "Chinese dream" in a judicial liquidation.
At that time, public opinion generally believed that this failure not only ended the expansion ambition of the Sergio Marchionne era but also reflected the collective slowdown of Western automakers in the wave of electrification.
On paper, this joint - venture company once held the key to success: Two modern factories supported an annual production capacity of 300,000 units, and its product line was said to have been locally adjusted to suit Chinese consumers. The peak sales volume of over 200,000 units in 2017 seemed to confirm its potential.
However, the turning point came unexpectedly. As local brands like BYD experienced explosive growth with electrification technology and the domestic automotive market accelerated its transformation to new - energy vehicles, consumers' confidence in fuel - powered vehicles continued to decline, and the sales volume of the joint - venture company plummeted.
Even after FCA and PSA merged to form Stellantis, Carlos Tavares tried to make a comeback. However, restricted by rigid localization decision - making, frictions with Chinese partners, and changes in the regulatory environment, he ultimately failed to reverse the situation and had to withdraw from the strategic market dejectedly.
A dramatic turn occurred six months later. The departure of Carlos Tavares and the appointment of Antonio Filosa marked a 180 - degree turn in Stellantis' China strategy.
The "asset - light" strategy implemented by the former CEO was actually a strategic contraction, while Filosa sent a strong signal as soon as he took office: The Chinese market is worth reinvesting in, even if it means reopening old wounds.
The strategic turn was first reflected in intensive high - level diplomacy. In February 2025, John Elkann, the chairman of the group, took the lead in visiting China to learn, stating frankly that the purpose was to accelerate the electrification transformation. Filosa, who took office in June, led more than a dozen executives on an urgent visit to China in July, holding a confidential meeting of "no more than five people" with Yang Qing, the chairman of Dongfeng, and the leaders of the Wuhan Economic Development Zone, highlighting the strategic importance of the cooperation negotiation.
In August, the global CEOs of Peugeot and Citroën followed suit, conducting on - the - spot inspections of the battery and charging - infrastructure ecosystem. This six - month - long intensive visit to China by high - level executives, in sharp contrast to the silence during the Carlos Tavares era, was interpreted by the industry as a clear signal of strategic awakening.
The organizational - structure restructuring on October 8, 2025, put the strategic transformation into practice. Olivier, an expert in the Asian market, was appointed as the head of the China and Asia - Pacific region and entered the group's executive committee. Maserati also welcomed its new CEO, Jean - Philippe Imparato, forming a dual - layout of "stabilizing luxury brands + breaking through in regional markets".
Filosa emphasized during the personnel announcement: "We need to strengthen regional focus." This statement hits the core, as China has been upgraded from an ordinary market to a global strategic pillar.
Stellantis' current strategy in China is divided into two parts. On the one hand, it is renewing old ties and deepening cooperation with Dongfeng Group, planning to increase local production capacity relying on Wuhan's mature industrial ecosystem. On the other hand, it is taking an unconventional approach by investing 1.5 billion euros in the new - energy startup Leapmotor and appointing Xin Tianshu to concurrently serve as the COO of the China region and the head of strategic alliances, trying to quickly obtain local technology and supply - chain resources.
However, this path to redemption is full of thorns. Although the strategic blueprint seems perfect, Stellantis still faces challenges. The dual - track cooperation hides coordination risks, and precise balance is required in the technology integration with Dongfeng and the interest distribution with Leapmotor. Its ability to localize needs to be proven, as its electrified products were previously snubbed by the market due to short battery life and weak intelligence, and there is already a technological gap with Chinese brands.
More fundamentally, Stellantis' return to China is essentially a two - way learning process. The Chinese market can not only absorb its production capacity but also provide core technologies such as batteries, ultra - fast charging, and software integration, providing a boost for its transformation in the European and American markets. As shown by Audi's successful case of quickly iterating its intelligent - driving technology through cooperation with Huawei, foreign brands can only gain a foothold by deeply integrating into the local ecosystem.
Now, Stellantis has accelerated its transformation, but the outcome is still unknown. As an analyst said: "The real question is not whether Stellantis will return to China, but whether it can ultimately become a Chinese automaker rather than just a passing guest."