DONGFENG GROUP(HK:00489) Mei Ri Jing Ji Xin Wen·2025-10-21 12:53Core Viewpoint - There are rumors about Stellantis and Dongfeng Group collaborating to develop a new Jeep off-road vehicle, leveraging technologies from both companies, but both parties have stated that these are mere speculations [1][2][4]. Group 1: Jeep's Market Position - Jeep has a 40-year history in the Chinese market but has faced challenges, especially after the dissolution of its joint venture with GAC Group in July 2022, leading to a shift to an all-import model [2][6]. - The brand's traditional market leadership is under threat due to the rising penetration of new energy vehicles (NEVs) in China, and Jeep's reliance on its existing fuel product line may lead to further marginalization [2][6]. - A visit to a Jeep dealership revealed a lack of NEV offerings and low customer traffic compared to competitors like Denza and Li Auto [2][6]. Group 2: Collaboration with Dongfeng - The potential collaboration with Dongfeng Group could help Jeep accelerate its electric vehicle (EV) product rollout, especially given Dongfeng's success with its luxury electric off-road brand, Mengshi [3][4]. - Dongfeng's partnership with Huawei enhances its technological capabilities, which could be beneficial for Jeep and Stellantis in the context of the Chinese smart supply chain [3][4]. Group 3: Stellantis' Strategic Moves - Stellantis has been actively engaging with Dongfeng Group, with multiple high-level visits indicating a renewed focus on the Chinese market and a desire to strengthen collaboration [4][5]. - The new CEO of Stellantis, Antonio Filosa, emphasized the need for deeper cooperation with Dongfeng to accelerate the transition to new energy vehicles and achieve sustainable development [5][6]. - Stellantis is under pressure to improve its performance in China, as evidenced by a significant decline in revenue and net profit in the first half of 2025, necessitating strategic adjustments [6].