Stellantis is betting on Chinese Dongfeng to get Jeep back on track in Europe. In addition to greenlighting the import of the American Recon, the lineup will be completed in 2028 with a Chinese-built plug-in hybrid SUV. But Brussels is already drafting tariffs on the exact type of vehicle this partnership produces.
Jeep’s European portfolio has collapsed to just two models: the compact Avenger and the mid-size Compass. The Wrangler, Renegade, Grand Cherokee, and Gladiator are all gone, victims of CO2 regulations that made their emissions profiles unworkable under Stellantis’ fleet average. Total European sales fell 4.5% this year.
Comeback plan
The comeback plan, unveiled by Jeep Europe chief Fabio Catone, is based around a sixfold portfolio by 2030 encompassing the arrival of four new models. Stellantis has named the brand as one of its four global priority pillars under the Fastlane 2030 strategy. This position gets Jeep top billing in investment allocation.
But the most noticeable new model is the D-segment SUV, planned for Europe in 2028. It will be built at the DPCA Wuhan plant in China, co-developed with Stellantis’ industrial partner, Dongfeng.
An EREV?
The new SUV will use a platform designed for both combustion and electric powertrains. But it seems that only a plug-in hybrid is scheduled for Europe, possibly in a range-extender setup.
Fabio Carli, Jeep Europe’s product marketing head, said to Reuters that “it is not at all a rebadge, it’s a project we’re developing in partnership, with a strong Stellantis role.”
That partnership was cemented last May, when Stellantis and Dongfeng announced a deal worth approximately €1 billion, with Stellantis contributing roughly €130 million.
Within the framework, the Wuhan factory will produce two Jeep-branded off-road new-energy vehicles and two Peugeot models from 2027, both intended for China and global export.
Whether the Made-in-China route bears fruit for Jeep remains to be seen. The EU’s additional tariffs on Chinese battery-electric vehicles – a cumulative 30.8% for Dongfeng – have been in force since late 2024. PHEVs have been excluded.
STLA One
But that loophole is closing. The European Commission is now preparing countervailing duties on Chinese plug-in hybrids, with an anti-subsidy investigation already underway. This means Jeep’s Dongfeng-built SUV could land right as the tariff wall goes up. The timing could be better.
Though not everything in Jeep’s European revival depends on China, next year, the Recon, an all-electric off-roader with removable doors, arrives from the US in 2027.
Between 2028 and 2030, two new compact SUVs on the STLA One platform will roll out of European factories, offering full-hybrid and four-wheel-drive variants. These will be positioned above the Avenger.
Jeep has shelved the Wagoneer S for Europe and ruled out pickups like the small Scrambler on emissions grounds. Catone says a future Wrangler remains an option.
The strategy is clear: Jeep needs scale to survive in Europe, and scale requires affordable platforms. Dongfeng’s production expertise in Wuhan brings down costs.
But leaning on a Chinese partner for your large European SUV is not without risk. By the time that Jeep arrives at dealers, EU tariffs on Chinese PHEVs may have erased the cost advantage that made the partnership attractive in the first place.
