Core Viewpoint - Stellantis Group and Dongfeng Group are planning to deepen their collaboration to jointly develop a new rugged off-road vehicle under the Jeep brand, leveraging technologies from their respective brands, including Lantu and Hummer [1][2] Group 1: Collaboration Details - The collaboration will adopt a "Joint Venture 2.0" model, where both parties will act as technology suppliers, with Stellantis focusing on the design and chassis tuning of the new Jeep model, while Dongfeng will provide core technologies such as electric powertrains and intelligent cockpit systems [1] - Dongfeng Group has acknowledged ongoing discussions with Stellantis but emphasized that any specific details circulating in the media are speculative [1] Group 2: 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 in China [2] - The brand's traditional strength is being tested in a rapidly changing market, particularly with the increasing penetration of new energy vehicles (NEVs) in China [2] - A recent visit to a Jeep dealership revealed a limited presence compared to competitors in the NEV space, indicating a potential marginalization of the brand if it does not adapt [2] Group 3: Strategic Importance of Collaboration - The partnership with Dongfeng is seen as a strategic move for Jeep to accelerate its electrification efforts, especially given Dongfeng's success with its luxury electric off-road brand, Hummer, supported by Huawei's technology [3] - The collaboration is not only about leveraging Dongfeng's M TECH platform but also about integrating into the broader Chinese smart supply chain ecosystem represented by Huawei [3] Group 4: Executive Engagement - Stellantis executives have been actively visiting China, signaling a renewed focus on the Chinese market and the importance of collaboration with Dongfeng [4] - High-level meetings have been characterized by confidentiality, indicating the strategic significance of these discussions for Stellantis's future in China [5] Group 5: Financial Performance - Stellantis reported a significant decline in performance in the first half of 2025, with revenues of €74.3 billion (approximately ¥615 billion), a 13% year-over-year decrease, and a net loss of €2.3 billion (approximately ¥19 billion) compared to a net profit of €5.6 billion (approximately ¥46.4 billion) in the same period last year [6] - The company’s global sales also fell by 8%, totaling 2.69 million vehicles in the first half of the year, highlighting the urgent need for strategic adjustments to improve market performance [6]

Core Insights - Stellantis Group is rumored to collaborate further with Dongfeng Group to jointly develop a new rugged off-road vehicle under the Jeep brand, leveraging technologies from Lantu and Hummer [1][6] - The collaboration is expected to follow a "Joint Venture 2.0" model, with Stellantis focusing on vehicle design and chassis tuning, while Dongfeng will provide core technologies such as electric powertrains and smart cockpit systems [1][6] - Jeep's historical position as a market leader in China is challenged by the increasing penetration of new energy vehicles (NEVs), necessitating a shift towards electric models to avoid market marginalization [6][8] Company Developments - Jeep has a 40-year history in China, but faced setbacks after Stellantis and GAC Group ended their joint venture, leading to Jeep's transition to an all-import model in the Chinese market [2][6] - The current market environment shows that Jeep's existing fuel vehicle lineup is insufficient to compete against emerging NEV brands, highlighting the need for a comprehensive transition to electric vehicles [6][7] - Stellantis has been actively engaging with Dongfeng Group, with multiple high-level visits aimed at strengthening cooperation and accelerating the electric transformation in response to competitive pressures in the Chinese market [8][9] Financial Performance - Stellantis reported a significant decline in performance for the first half of 2025, with revenues of €74.3 billion (approximately ¥615 billion), down 13% year-on-year, and a net loss of €2.3 billion (approximately ¥19 billion) compared to a net profit of €5.6 billion (approximately ¥46.4 billion) in the previous year [9] - Global sales for Stellantis in the first half of the year reached 2.69 million units, reflecting an 8% decrease compared to the previous year [9]

Core Viewpoint - The Chinese automotive market is undergoing a significant structural adjustment, with domestic brands increasing their market share at the expense of foreign brands, which now hold less than 35% of the market [4]. Group 1: Domestic Brand Growth - In 2024, domestic passenger car sales are projected to reach 17.97 million units, accounting for 65.2% of total passenger car sales, an increase of 9.2 percentage points year-on-year [4]. - In April 2025, domestic brands achieved retail sales of 1.15 million units, a year-on-year increase of 31%, with a market share of 65.5%, up 8 percentage points [4]. - From January to April 2025, domestic brands held a retail market share of 64%, an increase of 7.9 percentage points compared to the previous year, particularly gaining in the new energy and export markets [4]. Group 2: Challenges Faced by Foreign Brands - Kia is struggling in the Chinese market due to a lack of clarity in positioning and slow progress in electrification, with only 21.5% of global sales being electric models in 2024 [6]. - Skoda's sales in China fell by 23.1% year-on-year to 17,500 units in 2024, as it is squeezed by both the Volkswagen brand's price cuts and the competitive offerings from domestic brands [9][10]. - Jeep's focus on SUVs has led to a disconnect with Chinese consumer preferences, resulting in a decline in brand presence and market share [11]. Group 3: Global Performance of Foreign Brands - Despite challenges in China, Kia remains strong in its home market and is expanding in North America and Europe, achieving over 3 million global sales in 2024 [20]. - Skoda's global sales reached 926,600 units in 2024, with strong performance in Europe, particularly in Germany, the Czech Republic, and the UK [21]. - Jeep's brand recognition and performance in North America remain robust, with 90% of its global sales coming from this market, totaling 587,800 units in 2024 [23]. Group 4: Lessons Learned - The struggles of foreign brands in China highlight the importance of understanding local consumer preferences and adapting product strategies accordingly [28]. - Successful global strategies require a deep understanding of localization, which encompasses product definition, technology routes, brand communication, and supply chain management [29]. - Brands must recognize their positioning and strengths, focusing on markets that align with their core competencies rather than pursuing broad-scale expansion [29].