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Key facts
New details about Jeep’s return to China
Additional details have emerged about the new Jeep models that the brand will assemble in China as part of a local partnership with Dongfeng Motor Group. Under the agreement, Jeep will develop two electrified models using Dongfeng technologies. These vehicles will not only be sold in China, but also exported to international markets.
Partnership agreement with Dongfeng
Back in May, Stellantis signed a new agreement with Dongfeng, marking Jeep’s return to car production in China after a four-year hiatus. Notably, this will be the first time in the brand’s history that Jeep vehicles intended for the Chinese market will be exported abroad.
Previously reported: the next Jeep EV could be made in China rather than Ohio, following the deal with Stellantis.
What is known about the new models
Stellantis CEO Antonio Filosa said earlier this week that the newly formed Dongfeng Stellantis Automotive Technology, which has received $1.2 billion in investment, will develop two Jeep models at its Wuhan facility. Work will begin as early as next year. Both plug-in hybrid versions and fully electric variants will be created.
According to Auto News, Dongfeng Stellantis Automotive Technology will handle development and marketing of the new models, while the long-standing Dongfeng Peugeot-Citroen (DPCA) joint venture will handle actual production. Dongfeng said it would provide the partnership with its key electrification and intelligent systems technologies. In addition to the two Jeep models, two Peugeot models – hybrid and electric – will also be assembled in China.
Jeep’s sales collapse in China
Like many other Western brands, Jeep has sharply lost ground in the Chinese market in recent years. In 2017, when sales peaked, 203,000 Cherokee, Compass, Renegade and Grand Commander vehicles were sold in China. By 2022, however, that figure had fallen to fewer than 20,000 vehicles. That is what prompted Stellantis to end its joint venture with GAC, which had been responsible for local production of these models since 2014.
Currently, Jeep is represented on the Chinese market by only three models: Wrangler, Gladiator and Grand Cherokee.
Export prospects
Neither Jeep nor Dongfeng has yet disclosed which foreign markets the China-assembled models will go to. That said, it is quite logical to assume that other Asian countries will be among them, and possibly Europe as well.
What this means for the market
Importantly, Chinese production is now seen not only as a way to return to the local market, but also as a base for global exports. This could significantly reduce production costs, but it also creates challenges: Western consumers are sometimes skeptical of Chinese-assembled cars. The use of Dongfeng batteries and technologies also shows that Jeep is actively integrating the Chinese EV ecosystem into its future models. If the first two models prove successful, Stellantis could expand the lineup and strengthen Jeep’s position in a region where the brand previously lost significant market share.
