Ford rival doubles down on China with bold move

Stellantis is accelerating its China and Europe EV push, signing a strategic cooperation with state-owned Dongfeng to produce Peugeot and Jeep EVs in Wuhan (production from 2027) and deepening its partnership with Chinese EV maker Leapmotor (Stellantis holds a 51% JV stake). The Wuhan project carries >8 billion CNY (~€1bn) of investment, with Stellantis contributing about €130m. Stellantis also plans new production lines in Spain with potential starts in 2028. The moves come alongside improving Q1 results—shipments up 12% to 1.4m units, net revenues €38.1bn and adjusted operating income €1bn—supporting its strategic pivot. Market impact: these deals intensify competition in China and Europe’s EV markets, are bullish for Stellantis shares but increase pressure on incumbent EV leaders (including Tesla) and on pricing/margins across the supplier and OEM ecosystem. Investors should watch execution, regional production timelines, and upcoming Investor Day on May 21 for longer-term guidance.