The phrase "if you can't beat them, join them" describes the new plan at Stellantis. After a tough year in 2025, the automotive giant is looking for ways to recover. While sales started to rise in early 2026, the company still faces a major European automotive manufacturing crisis.
To solve this, Stellantis is forming new alliances. The company already has a Stellantis Leapmotor joint venture. This deal allows them to build and sell Chinese electric models outside of China. It gives Stellantis access to cheaper tech while helping Leapmotor enter the European market.
New Partnerships on the Horizon
Stellantis is now in talks with Dongfeng for a similar deal. Under this plan, Dongfeng could use empty space in Stellantis' European factories. This helps the Chinese firm avoid high import taxes. For Stellantis, it means they might not have to close their plants in Europe.
These shifts in global manufacturing are a major topic at recent IT events in Portugal, as car making becomes more about software and electric platforms. Other brands like Xiaomi and XPeng are also rumored to be looking for similar deals. By opening their doors, Stellantis hopes to turn rivals into partners.
A Strategy for Survival
The Stellantis China partnership 2026 is a return to the company's roots. Years ago, the owners of Peugeot worked closely with Dongfeng to enter Asia. Now, the roles are reversing to protect European jobs.
This plan involves modernizing how factories run. Some parts of the business may even use a coworking model for research and development between the two companies. By sharing technology and space, Stellantis aims to stay competitive while keeping its production lines running.
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