Gasgoo Munich- Dongfeng Motor General Manager Feng Changjun recently hosted a Stellantis leadership delegation at the company's Wuhan headquarters. Before the talks, the Stellantis team visited the Wuhan Intelligent Connected Vehicle Test Field for test drives and a closer look at Dongfeng's technology roadmap.
Holding the meeting in Wuhan carries symbolic weight. For the past decade, the Stellantis-Dongfeng relationship revolved largely around the production and sales of their joint venture, Dongfeng Peugeot-Citroën. Now, the focus has shifted from "how many units we'll sell this year" to "how we can sell cars in Europe together."
In a joint statement, the two sides summed up their new collaboration framework in eight characters: "Chinese innovation, global sharing." Stellantis is no longer just a joint-venture partner for Dongfeng, nor is Dongfeng merely Stellantis' gateway into China.
The two are testing a new division of labor: Dongfeng supplies the technology and products, while Stellantis brings the channels and a global network.
Image source: Dongfeng Motor
From Selling Cars in China to Technology Exchange
Stellantis' retreat in China is an open secret. Combined annual sales for its two main brands, Peugeot and Citroën, now hover below 100,000 units—a far cry from the 700,000 peak. Jeep has shuttered its local production base, while Dodge and Chrysler have all but exited the market.
But retreating doesn't mean quitting. Stellantis is charting a different course: rather than fighting domestic brands head-on in China, it's treating the country as a supply base for technology and products. The goal is to leverage Chinese expertise in electrification and smart features through partnerships, then export those capabilities globally.
Image source: Dongfeng Motor
A critical milestone in this shift is 2026. Earlier, Stellantis and Dongfeng signed a non-binding memorandum of understanding to establish a joint venture in Europe. Stellantis will hold a 51% stake, with Dongfeng owning 49%. Headquartered in Europe, the new entity will handle sales and distribution for Dongfeng's Voyah electric vehicles, while also managing production, procurement, and engineering.
In August, Dongfeng Stellantis Automotive Technology (Wuhan) Co., Ltd. (DSAT) rebranded and assumed management duties for the partners' joint-venture operations in China. The entity, known as DSAT, is no longer just a manufacturing base—it has evolved into a platform for technical and product collaboration.
In September, DSAT struck a global strategic partnership with Momenta. Building on Momenta's R7 world model, the two will jointly develop an advanced driver-assistance system. This technology will be integrated into new mass-production models from Stellantis' Peugeot and Jeep brands, targeting markets in China, Europe, and beyond.
Stellantis and Dongfeng have executed three major steps in their partnership within just six months. The early November meeting in Wuhan served as a checkpoint to review that progress.
How Far Can This Model Go?
The "Chinese innovation, global sharing" model sounds promising on paper, but several unavoidable hurdles stand in the way of execution.
First, there are trade barriers in Europe. The EU began imposing anti-subsidy tariffs on Chinese EVs in 2024, with rates ranging from 17% to 35%. As Dongfeng's premium EV brand, Voyah would face those duties if exported directly from China.
The design of the European joint venture is partly intended to address this: local production and sourcing can mitigate tariff impacts. However, manufacturing costs in Europe are significantly higher than in China, which will squeeze Voyah's pricing power.
Image source: Stellantis
Second is the competition at home. While DSAT is positioned as a global platform, it still manages production and sales for Peugeot and Citroën in China. Both brands are under intense pressure from domestic rivals like BYD, Geely, and Chery.
The 100,000 to 200,000 yuan price range is where Chinese brands are strongest, and joint-ventures are losing ground year after year. If DSAT cannot stabilize its position in China, it won't have the resources to support global collaboration.
Third is the sustainability of the technology exchange. Stellantis is tapping into Chinese expertise in electrification and smart features, but that technology evolves rapidly. If Stellantis only integrates current versions into its models, it risks falling behind within two or three years. Both sides need a mechanism for continuous synchronization, not a one-off transfer.
A Stellantis spokesperson declined to comment further when reached by Gasgoo.
Stellantis CEO Carlos Tavares has repeatedly stated that competition in China is the fiercest globally, and that the company needs to learn from China's speed and efficiency. The unspoken implication: Stellantis no longer has the firepower to compete head-on in China, but cooperation can buy it a ticket to stay in the game.
Dongfeng has its own calculations. Voyah's domestic performance has been lackluster, with annual sales in 2025 expected to total about 150,000 units—trailing new rivals like Li Auto and NIO. Leveraging Stellantis' European sales network would allow Voyah to quickly enter the region and secure overseas revenue and brand prestige.
The real test will be Voyah's first European orders next year, followed by DSAT's quarterly earnings the year after. Only when the wheels cross the border will we know if this model can truly gain traction.
