Takeaways
- Stellantis is in exploratory talks with Dongfeng Motor about joint car production in Europe and China, including Dongfeng accessing underused European factories and potentially investing in or acquiring plants at a later stage.
- The Dongfeng discussions follow separate talks with Xiaomi and Xpeng, and run concurrently with advanced negotiations with Leapmotor to build an Opel electric SUV on Chinese architecture at Stellantis‘ Zaragoza plant from 2028.
Stellantis is discussing reviving a partnership with Chinese state-owned automaker Dongfeng Motor that would involve joint car production in Europe and China, according to people familiar with the matter cited in a Bloomberg report published on 15 April 2026.
Discussions represent the latest in a series of outreach efforts by the Franco-Italian carmaker to Chinese partners as it grapples with weak demand, intensifying competition, and underutilised European factories.
Exploratory Talks Include Factory Access and Potential Investment
The companies are in talks about giving Dongfeng access to underused Stellantis factories in Europe, with representatives for the Chinese manufacturer recently visiting sites in Germany and Italy. Deliberations include the possibility of Dongfeng acquiring or investing in one or more European plants at a later stage, the people said. In return, Dongfeng could make cars from selected Stellantis brands in China, some of the people added. The latest talks have not been finalised and may still fall apart.
Stellantis declined to comment beyond a standard statement that the company holds discussions with a range of industry players around the world on various topics as part of its normal course of business. Dongfeng said the two companies have a positive foundation for partnership and will continue to strengthen complementary advantages.
Stellantis Multi-Partner Strategy Takes Shape
The Dongfeng talks come alongside several other Chinese partnership discussions. Stellantis executives previously met with Xiaomi and Xpeng to discuss overhaul options, including scenarios in which the Chinese companies take stakes in assets such as Maserati or other units while gaining access to European production capacity.
Those talks have not yet produced an agreement, but Stellantis may still make deals with more than one Chinese company, the people said. Automaker has also been working with Leapmotor on sales in Europe and is considering using more of that partner’s technology to strengthen mass-market brands such as Fiat and Opel. Leapmotor discussions include the joint development of an Opel-branded electric SUV on Leapmotor‘s B10 platform, with production targeted for Zaragoza, Spain, from 2028.
European Factory Utilisation and Tariff Avoidance
Bringing in a manufacturing partner in Europe could help Stellantis reduce costs, improve plant utilisation and avoid politically sensitive closures. The company operates dozens of factories in the region, several of which are underutilised. Chinese automakers, meanwhile, are looking for local production to sidestep European Union tariffs as they expand in the bloc. EU’s countervailing duties on Chinese-built EVs, which range from 7.8% to 35.3% on top of the standard 10% car tariff, make local assembly in Europe a financially attractive pathway. Spain, which abstained in the October 2024 tariff vote, has emerged as a preferred location for such arrangements, hosting the planned Leapmotor B10 assembly from late 2026.
The open question is whether European workers, unions and regulators will regard a Chinese state-owned manufacturer acquiring or investing in EU production sites as a strategic win for industrial competitiveness, or as the gradual transfer of EV technology leadership to Chinese platforms under European brand labels.
