Jeep turns to China for help as embattled 4WD brand sinks in the sales charts in the face of GWM Tank 300 and BYD Shark 6

Iconic off-road brand Jeep may have been thrown a lifeline to be rescued from its current struggles in the form of Chinese carmaker Dongfeng with which it will build future models.

Jeep’s parent company Stellantis has signed a new agreement which will see the joint venture currently known as Dongfeng Peugeot Citroen Automobile (DPCA) produce two Peugeot models and two Jeeps.

The A$1.7 billion agreement will not only allow Stellantis to be more competitive locally in China with the models made at Dongfeng Wuhan plant but will also see these models exported globally.

Add CarsGuide as a preferred source in Google Search

Read More About

Speaking at the Financial Times Future of the Car Summit last week Stellantis CEO Antonio Filosa said the partnership with Dongfeng was part of the company’s new strategy for the future.

"Stellantis has been growing this last year, creating a clear view of being attractive for long-term partnerships to many players," he said.

"We are attractive because we are strong in many regions, we are attractive because of our scale, and mostly because we have unbelievably strong brands, so our level of appeal is big.

"We understand that by working with a set of partners to build a roadmap of technological improvement, supply chain improvement and maybe capacity utilisation. These are really good topics to work together and create benefits."

2026 Jeep Gladiator

Stellantis already has an existing separate agreement with Dongfeng and has produced the Peugeot 4008 and 5008 in China. The new joint venture will see Dongfeng’s Concept 6 and Concept 8 both shown at the recent Beijing motor show underpin two new Peugeot models.

As for the two Jeep models both are expected to be 'new energy' (plug-in) vehicles but the platforms underpinning them is currently unknown. Filosa is expected to reveal more on this at an investor conference this week in the United States.

Dongfeng currently has a large array of off-road models in its portfolio from the Rich 7 dual cab ute to the hardcore MHero SUV. The company also displayed what it calls the "first new energy all terrain extreme off-road concept vehicle - the MHero M-Hunter" at the Beijing motor show. It’s a model which may fit Jeep’s go-anywhere ethos well if it was to be chosen as the basis for a new model.

Dongfeng MHero

Production of the new Jeep and Peugeot models will begin at the Wuhan factory in 2027.

It could be the shot in the arm Jeep and Peugeot needs both globally and in Australia.

Year to date sales of Jeep vehicles in Australia have reached just 249, a 65 per cent drop over the same period in 2025.

Dongfeng MHero M-Hunter

Peugeot’s performance locally has been somewhat better but still underwhelming with 320 units registered year to date representing a 32.3 per cent decline compared to 2025.

Stellantis will be looking to the new joint venture to give what are well known brands the technological innovation needed to compete in an auto landscape which is appearing to swing to Chinese dominance.