Stellantis and Dongfeng decide to end their partnership
- The Stellantis Group, the result of the merger of the PSA (Peugeot-Citroën) and FCA (Fiat-Chrysler) groups in 2021, has decided to end its collaboration with the Chinese carmaker Dongfeng, with whom PSA had been working for around 30 years.
- This collaboration had been beneficial until 2014, a record year in which 750,000 PSA vehicles were produced by Dongfeng in China, after twenty years of uninterrupted growth (except for 2008). However, due to competition and marketing mistakes, this trend reversed from 2015. The decline of PSA production in China accelerated from 2016, with less than 100,000 PSA Group cars produced by Dongfeng in China in 2020. The establishment of Stellantis in 2021 did not really improve the situation. There was no real upturn in 2021 and 2022. At the same time, Dongfeng gradually withdrew from Stellantis' capital, from 6.1% to 3.2% in 2022, with the remaining shares to be sold in 2023.
- On the FCA Group side, the situation was no better. Its production in China has always been very weak and ended in 2022 with the bankruptcy of the joint venture with the Chinese GAC Group that produced Jeeps.
- Taken together, these difficulties convinced Stellantis' management to finally abandon the Chinese market (the largest automotive market in the world) and focus on the European and American markets, where the Stellantis Group has 19% and 12% of registrations (cars+LUVs), respectively, while it has only a 0.6% market share in China.
- Stellantis could therefore stop producing cars in China from 2024 or 2025.
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