Stellantis N.V. (NYSE:STLA) shares are up on Wednesday as the company is expanding its partnership with Dongfeng Group.

The companies signed a non-binding Memorandum of Understanding to establish a Europe-based joint venture focused on sales and distribution of new energy vehicles (NEVs).

Details

The plan outlines a Europe-based JV, majority-led 51/49 by Stellantis, covering sales, distribution, manufacturing, purchasing, and engineering of Dongfeng's NEVs, initially targeting selected European markets.

The JV would launch Dongfeng's Voyah premium EVs across Europe, leveraging Stellantis' retail and after-sales network, while also coordinating sourcing and engineering with Dongfeng's China-based NEV capabilities.

The partners are also considering local production at Stellantis' Rennes plant in France, aligned with EU regulatory and "Made-in-Europe" requirements.

The collaboration is expected to tap into Dongfeng's competitive NEV ecosystem, aligning with both companies' strategic goals.

Earlier this month, Stellantis and Dongfeng announced an expanded collaboration under their China-based DPCA joint venture (Dongfeng Peugeot Citroën Automobile Co., Ltd.).

The venture will manufacture new Peugeot and Jeep-branded NEVs at ...