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European carmaker Stellantis and China's Dongfeng Motor Corporation unveiled a new joint venture in Europe on Wednesday that will combine manufacturing, engineering, sales and distribution operations, expanding cooperation between the two longtime automotive partners.
The agreement will see Dongfeng’s Voyah-branded electric vehicles produced at Stellantis’ factory in Rennes, western France, for European markets, as automakers across the region race to adjust to stricter emissions policies and rising competition from Chinese EV manufacturers.
Under the structure of the deal, Stellantis will hold a 51% stake in the venture, while Dongfeng will control the remaining 49%, and financial terms will not be disclosed.
The partnership also hands Dongfeng a manufacturing foothold inside the European Union at a time when Brussels has increased pressure on Chinese-made EV imports through new tariffs and local production requirements.
The announcement comes as Stellantis works through one of the most challenging periods since the company was formed in 2021 through the merger of Fiat Chrysler and France’s PSA Group, bringing together brands including Jeep, Peugeot, Fiat, Opel, Citroen, Ram, Alfa Romeo and Chrysler. Fiat Chrysler Automobiles and PSA Group merged to create the world’s fourth-largest automaker.
The company has struggled with slowing EV demand, falling sales in Europe and North America, and growing pressure from cheaper Chinese electric vehicle makers. Former CEO Carlos Tavares resigned in late 2024 after Stellantis reported a sharp decline in profits and shrinking market share.
Antonio Filosa, who took over as CEO in 2025, has since moved to reset the company’s strategy. Stellantis announced in February that it would absorb around €22.2 billion ($25.7 billion) in restructuring costs, asset write-downs and other charges tied largely to its electric vehicle business after revising expectations for EV demand and scaling back several projects.
The company acknowledged it had overestimated the pace of the transition to battery-electric vehicles and began shifting focus back toward hybrids and combustion-engine models alongside EVs.
Filosa has also been looking for ways to better use Stellantis’ underutilized European factories, including partnerships with Chinese automakers. Reuters reported that average utilization at Stellantis plants in Europe remained well below industry norms.
Earlier this month, Stellantis and Dongfeng signed a separate $1.2 billion agreement to manufacture Jeep and Peugeot vehicles in China, including new electric Jeep models aimed at both domestic and export markets.
The automaker is simultaneously preparing a low-cost small EV platform for Europe under a project known as the "E-Car," targeting prices around €15,000 as competition intensifies in the affordable EV segment.
Dongfeng, one of China’s largest state-owned carmakers, has been accelerating its overseas push as competition inside China’s crowded EV market intensifies.
The Wuhan-based company operates joint ventures with several international brands and owns the premium EV marque Voyah.
The company sold just over 3,200 vehicles in Europe in 2025 and is aiming to sharply increase international sales by the end of the decade.
"With this new chapter in our collaboration, we will give our customers an even greater choice of competitive products and pricing," Filosa said in a statement.
Dongfeng Chairman Qing Yang described the agreement as a way to deepen cooperation in technology, branding and overseas markets while accelerating the Chinese company’s global expansion.
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