Stellantis, the French-Italian automaker, is advancing its strategy to strengthen its position in Europe through partnerships with Chinese manufacturers and compliance with EU regulations. The company has announced a joint venture with China’s Dongfeng, in which Stellantis will hold a controlling 51% stake. This collaboration will see Dongfeng’s new electric vehicle (EV) models assembled at a Stellantis plant in western France, aligning with the EU’s "Made in Europe" rule, which mandates that 70% of EV content must be locally produced .
Separately, Stellantis is targeting the European market with a new small EV priced at $17,500, aiming to revitalize demand in the region. This move reflects the company’s broader efforts to adapt to shifting market dynamics and regulatory pressures in the EU . The joint venture with Dongfeng further underscores Stellantis’ focus on leveraging Chinese expertise while ensuring compliance with EU manufacturing and trade policies.