Stellantis Revives Peugeot Brand in Brazil with Dongfeng Motor

en.Wedoany.com Reported - Stellantis Group will leverage its international partnership with China's Dongfeng Motor to strategically reposition the Peugeot brand in the Brazilian market, focusing on a segment centered on sophistication and technology.

Herlander Zola, President of Stellantis South America, stated in an interview in Belo Horizonte that Peugeot's future in Brazil will involve utilizing platforms, technologies, and vehicles co-developed with its Asian partner. Zola cited two electric models unveiled at the Beijing Auto Show—one of which is an SUV—that will be manufactured by Dongfeng Motor, setting the course for Peugeot in Brazil.

The Peugeot brand, originating from PSA Peugeot Citroën, has a partnership with Dongfeng Motor dating back to the 1990s. In recent years, this collaboration has been revitalized, establishing an international joint venture. Zola noted that the projects under consideration are global in scope and may also be adopted by other group brands, depending on competitiveness in each market.

Currently, Peugeot's performance in Brazil has fallen short of expectations. The brand's share of the passenger car market was only 0.6% in the first half of the year, slightly higher at 1% last year (2025), but down from 1.6% in 2021. Citroën achieved a modest recovery through the C-Cubed project, with its share rising from 1.3% in 2021 to 1.9% last year. However, this has not fully compensated for the losses caused by the transfer of Peugeot 208 and 2008 production to Argentina, nor has it alleviated the significant idle capacity at the Porto Real plant in Rio de Janeiro state, which has now been revitalized with the launch of the Jeep Avenger.

Zola emphasized that Peugeot and Citroën will have distinct and complementary positions compared to Fiat and Jeep. In addition to considering regional distribution of Dongfeng Motor models, South American operations are also studying the production of vehicles sourced from China in Brazil. Regarding whether Dongfeng Motor will simultaneously assemble vehicles with Nissan in Brazil, Zola made it clear that only one option can be chosen, noting that the local assembly plan emerged only after the formal international agreement was reached in April, later than when Dongfeng and Nissan initiated negotiations.

Global collaboration is expected to accelerate Stellantis' rollout of electrified products worldwide, similar to the partnership with Leapmotor, whose vehicles are planned to be assembled in Goiana, Pernambuco state, starting in 2027, initially using imported CKD and SKD kits. Fiat and Jeep will continue to be Stellantis' prominent brands in South America, alongside RAM, which focuses on the pickup truck segment—a market accounting for 25% of regional sales, where Fiat maintains an absolute lead in Brazil. Peugeot and Citroën will enter a new phase, concentrating on niche areas, with ties to the Chinese industry becoming a decisive factor in their future development in South America.