What were the major headlines in the global auto industry this week?
Stellantis and Dongfeng Group Plan European Joint Venture
On May 20, Stellantis announced it had signed a non-binding memorandum of understanding with Dongfeng Motor Group Co., Ltd. to deepen a strategic partnership spanning 34 years. The plan calls for a new joint venture in Europe to handle sales, distribution, manufacturing, procurement, and R&D for Dongfeng's new-energy vehicles in designated markets.
Image Credit: Stellantis
Under current discussions, the JV would be headquartered in Europe and operated by Stellantis, which would hold a 51% stake against Dongfeng's 49%. A key focus: accelerating the premium Voyah brand in Europe using Stellantis's established channels and after-sales network. The partnership also aims to leverage Dongfeng's deep ties to China's EV supply chain for joint procurement and engineering.
The two are also exploring local production of Dongfeng's EV models at Stellantis's Rennes plant in France, aiming to meet local regulatory requirements and satisfy the "Made in Europe" label.
However, the deal's finalization hinges on profitability, commercial terms, regulatory approvals, and the signing of definitive agreements.
Just days earlier, on May 15, the companies agreed to bolster their Chinese joint venture, Dongfeng Peugeot-Citroën Automobile (DPCA). Starting in 2027, DPCA's Wuhan plant will produce new Peugeot and Jeep NEVs for global sale.
Since its inception, DPCA has produced over 6.5 million Peugeot and Citroën vehicles for markets at home and abroad.
Gasgoo Take: This two-way deepening of ties allows Dongfeng to patch up overseas gaps with localized production and mature channels, while Stellantis taps Chinese capacity for a global NEV rollout. It's a pragmatic move for automakers navigating the shifting landscape of global electrification.
Bosch Wins Major Mercedes Motor Supply Order
Reuters reported on May 19 that Bosch secured a long-term agreement with Mercedes-Benz to supply drive motors for a new generation of pure electric models. The contract extends well into the 2030s.
Image Credit: Bosch
Bosch described the order as a key strategic project, underscoring its steady growth in electric mobility despite industry price pressures and market fragmentation.
"This new order further cements our long-standing partnership with Mercedes and proves we can deliver technical excellence even on highly complex projects," said Markus Heyn, head of Bosch's Mobility Solutions business.
Neither party disclosed the financial value of the deal.
Gasgoo Take: Amid fierce competition and pricing squeezes, Bosch continues to land ultra-long-cycle orders from Mercedes. Its ability to hold the high-end EV supply line highlights the irreplaceable nature of its core technology.
NVIDIA Net Profit Soars 211%
On May 21, NVIDIA released its fiscal first-quarter 2027 report for the period ending April 26, 2026. Revenue hit $81.6 billion, up 85% year-over-year and 20% quarter-over-quarter, while net income surged 211% annually to $58.3 billion — a 36% sequential gain.
Image Credit: NVIDIA
The Data Center business drove the surge, with revenue reaching $75.2 billion (+92% YoY, +21% QoQ). Edge computing also showed strength, climbing 29% annually to $6.4 billion.
"The construction of AI factories is the largest infrastructure expansion in human history, and it is accelerating at an unprecedented pace," said Jensen Huang, NVIDIA's founder and CEO. He noted that agentic AI is rapidly creating value across industries, positioning NVIDIA as the only platform capable of running everywhere — from hyperscale data centers to the edge — for both frontier and open-source models.
NVIDIA returned about $20 billion to shareholders through buybacks and dividends. The board authorized an additional $80 billion in buybacks with no expiration date, bringing the remaining total authorization to $38.5 billion. The quarterly cash dividend was raised from $0.01 to $0.25 per share, payable on June 26, 2026.
Looking to the second quarter of fiscal 2027, NVIDIA projects revenue of $91 billion, plus or minus 2%.
Gasgoo Take: NVIDIA's explosive revenue and profit growth are fueled by booming demand for AI computing infrastructure. As commercialization accelerates, the company is solidifying its dominance as the absolute leader in global AI hardware.
ZF to Keep Motor Production In-House, But Cuts More Jobs
According to Reuters, German supplier ZF announced on May 19 that it will retain its in-house electric motor development and production. However, to stay competitive, it will cut hundreds more jobs.
Image Credit: ZF
European automakers and suppliers poured heavily into EV tech, but adoption has lagged expectations; demand is only now beginning to recover.
Last October, ZF confirmed a restructuring plan to cut 7,600 jobs. It recently evaluated whether to keep making motors and inverters or source them externally.
The decision: keep production internal but streamline further, aiming to avoid compulsory layoffs where possible.
The cuts will primarily affect plants in Schweinfurt and Auerbach in southern Germany, which employ over 1,000 people combined. Hundreds of positions will be eliminated.
Gasgoo Take: By holding onto motor production while trimming staff, ZF is adopting a classic survival strategy: balancing the need to preserve technical know-how with the reality of slowing electrification and rising costs.
Schaeffler Partners with ThunderSoft
Schaeffler and ThunderSoft signed a strategic agreement to co-develop central computing platforms for next-generation vehicle architectures, pushing the industry toward software-defined and AI-defined vehicles.
Image Credit: Schaeffler
The partnership focuses on modular, scalable solutions. As E/E architectures shift from distributed units to centralized computing, high-performance platforms are becoming critical. These systems integrate powertrain, energy management, driving functions, and infotainment into a single processor.
Schaeffler brings expertise in complex electronic systems, mass production, and safety-related domains like chassis and energy management. ThunderSoft contributes its software ecosystem, including operating systems and high-performance computing architectures for infotainment and ADAS.
By integrating functions once scattered across multiple units, the joint platform aims to reduce complexity, shorten development cycles, and enable flexible, cost-effective scaling across models and markets.
Future plans include a fully integrated vehicle computer platform on shared hardware. Initial focus is on Asia-Pacific and Europe, expanding later to China and North America, with compliance for regional intelligent vehicle regulations built in from the start.
Gasgoo Take: Schaeffler's alliance with ThunderSoft merges traditional hardware strength with a software ecosystem, precisely targeting the upgrade to central computing architectures and the shift to software-defined vehicles.
Valeo Signs Strategic Pact with ChuNeng
Valeo and ChuNeng signed an agreement in Wuhan to collaborate on key NEV areas, including intelligent lighting, powertrains, thermal management, and smart systems (sensors, domain controllers, sensor fusion).
Image Credit: Valeo
ChuNeng, backed by parent ChuNeng New Energy — a top player in power and storage batteries — leverages massive R&D and manufacturing capacity. It also draws on the supply chain and retail network of Hengxin Auto Group to build an "auto + energy" innovation ecosystem.
Valeo, a mobility tech leader with over a century of history, holds strong positions in electrification, ADAS, intelligent lighting, and software-defined vehicles. Its Smart Systems, Powertrain, and Visibility divisions aim to deliver safer, sustainable, and cost-effective mobility solutions.
The two companies plan to leverage their combined resources, qualifications, and technologies to build a relationship of mutual trust and long-term growth.
Gasgoo Take: Valeo's partnership with ChuNeng connects core overseas component technology with domestic energy and channel resources. By integrating multiple core NEV systems, they are refining the local layout of the new-energy industry.
