While Ford and General Motors wrestle with their China strategies, Stellantis is doubling down on the world’s largest auto market.
Stellantis, the maker of Jeep, Ram, and Peugeot, just made two sweeping moves that signal a sharply different playbook from its American rivals.
The decisions come at a pivotal moment for the global auto industry, which is wrestling with tariff pressures, shifting consumer demand, and the electric-vehicle transition, forcing every major automaker to rethink where it builds cars and with whom.
Stellantis (STLA) appears to have made up its mind.
Stellantis expands manufacturing in China
Stellantis and Chinese state-owned Dongfeng Group have agreed to expand what is already one of the auto industry’s longest-running partnerships.
- The two companies, which have worked together for more than three decades, signed a strategic cooperation agreement to produce Peugeot and Jeep-branded electric vehicles at a factory in Wuhan.
- Production is expected to begin in 2027, with two new Peugeot battery electric vehicles and two Jeep off-road electric models initially coming off the line.
- The Peugeot models will draw from design concepts shown at the 2026 Beijing Auto Show. Both the Peugeot and Jeep vehicles are intended for Chinese buyers as well as export markets worldwide.
- The total investment tied to the project is more than eight billion Chinese yuan, or roughly one billion euros. Stellantis is expected to contribute around 130 million euros of that figure.
The two companies also signed a non-binding memorandum of understanding to explore even broader cooperation down the road, covering shared scale, research, and development resources.
Stellantis CEO Antonio Filosa called the move a logical extension of the existing relationship.
“With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to leverage their strengths further and introduce all-new vehicles with cutting-edge EV technologies from brands that customers worldwide trust and love.”
Stellantis
Stellantis expands partnership with Leapmotor
Just days before the Dongfeng news, Stellantis and Chinese electric-vehicle maker Leapmotor announced plans to deepen their partnership.
Stellantis became Leapmotor’s largest shareholder in October 2023, picking up roughly a 21% stake.
At the same time, the two companies launched Leapmotor International, a joint venture with exclusive rights to manufacture and sell Leapmotor vehicles outside Greater China. Stellantis controls 51% of that venture, with Leapmotor holding 49%.
Since launching its first two models in 2024, Leapmotor International has expanded to more than 850 sales and service points across Europe.
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It shipped more than 40,000 vehicles in Europe in 2025 and has since expanded into South America, Asia-Pacific, the Middle East, Africa, and, most recently, Mexico.
Now the two companies intend to add a new production line at Stellantis’ Figueruelas plant in Zaragoza, Spain, to build an all-new Opel electric sport utility vehicle alongside Leapmotor’s C-SUV B10 model.
The Opel vehicle would use components sourced through the Leapmotor International ecosystem, which the companies say will help keep prices competitive for European customers. A potential production start of 2028 is being evaluated.
The plan also involves the Villaverde plant in Madrid. Stellantis and Leapmotor are discussing the possible transfer of ownership of that plant to Leapmotor International’s Spanish subsidiary.
New Leapmotor models could be built there, potentially starting in the first half of 2028, and would be sold across Europe, the Middle East, and Africa.
Filosa framed the expansion as a genuine win for both sides, stating:
“This plan to expand our successful partnership with Leapmotor… is expected to support production and advance localization in Europe of world-class manufacturing of electric vehicles at affordable prices.”
Stellantis stock aims to stage a comeback
Stellantis is coming off one of the worst stretches in its short history as a merged company, but the first-quarter 2026 numbers suggest a real turnaround is underway.
- Shipmentsrose 12% year over year to 1.4 million units.
- Net revenuescame in at 38.1 billion euros, up 6% from the same period in 2025.
- Adjusted operating incomereturned to positive territory at one billion euros, compared to a near-breakeven result a year earlier.
- The adjusted operating income margin came in at 2.5%, a 160-basis-point improvement.
North America led the recovery. Ram truck salesjumped 20% in the first quarter, making it the fastest-growing brand in the region.
Roughly 40% of Ram pickup deliveries in the quarter included the Hemi V8 engine, which carries a higher profit margin than the rest of the lineup.
Related: Stellantis shocking announcement leads to huge stock decline
Stellantis also gained about 80 basis points in U.S. market share even as the broader industry fell by 6%.
Europe returned to breakeven, with combined market share reaching 18.1%, including Leapmotor sales. South America, the Middle East, and Africa continued to generate strong profits.
Stellantis confirmed its full-year 2026 financial guidance, calling for improvement in revenues, margins, and industrial free cash flow.
The company also plans an Investor Day on May 21, where it is expected to lay out its longer-term strategy in more detail.
The picture emerging is of a company that spent 2025 absorbing pain and is now making deliberate, large-scale bets on where the industry is headed next.
Whether those bets pay off will depend on execution. But in China and in Europe’s EV market, Stellantis is clearly not standing still.
Related: Stellantis sees major shift in Ram 1500, Jeep customer behavior
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