Another new force has joined the joint venture landscape.

On August 20, Stellantis NV and its partners officially launched Shenlong Automobile Technology (Wuhan) Co., Ltd. The new entity was established with a registered capital of approximately 8.2 billion yuan, backed by Dongfeng Motor, Stellantis NV, Shenlong Automobile, along with the Yangtze River Industry Group, Wuhan Financial Holding Group, and Wuhan Economic Development Investment Group.

What sets Shenlong Technology apart is its innovative approach to the joint venture model and development strategy. Its initial plans include two Jeep and two Peugeot new energy vehicles, slated for phased release starting in 2027. These models will be manufactured at the Shenlong Automobile Wuhan plant and distributed globally through Stellantis NV's sales network.

At the founding ceremony, Stellantis NV CEO Antonio Filosa described Shenlong Technology as a "dedicated execution platform for a brand-new collaboration." The new company will oversee vehicle research and development, industrial investment, and new energy vehicle sales, while the existing Shenlong operations handle manufacturing. Dongfeng contributes its new energy and intelligent connected technologies, and Stellantis NV provides the Jeep and Peugeot brands along with its worldwide distribution channels.

Historically, joint ventures in China operated as complete automakers, where foreign partners supplied platforms and models, and Chinese partners invested in plants and distribution to open the domestic market, with returns driven by China sales. Shenlong Technology, in contrast, revolves around four specific vehicle models, dividing R&D, manufacturing, branding, capital, and sales among shareholders based on their respective strengths.

Dongfeng Motor Chairman Yang Qing characterized this division of labor as "a synergy of Sino-foreign collaboration, central-local coordination, and industrial-financial integration." The three Hubei and Wuhan local industrial capital entities collectively hold approximately 48.8% of the shares, Shenlong Automobile holds about 24.1%, and Dongfeng Motor and Stellantis NV each hold roughly 13.5%.

This structure creates a new exchange relationship among the six shareholders. Dongfeng seeks overseas brands and distribution channels, Stellantis NV needs China's new energy technology and cost advantages, local capital desires industrial projects, and the legacy Shenlong operations require new products to boost factory utilization.

The organizational setup has been notably fast-tracked. A cooperation agreement was signed on May 15, and the project company was established just 97 days later, placing it at the forefront of similar Sino-foreign ventures.

This speed stems from the project-based arrangement. Shenlong Technology avoids the need to build factories, R&D facilities, and sales networks from scratch; instead, each party simply allocates its existing resources and responsibilities to the project company.

The creation of a separate entity reflects the reality that traditional Shenlong's China sales can no longer sustain fresh investment. In 2015, Shenlong Automobile sold 710,700 vehicles; by 2025, that figure had fallen to just 51,500 units, less than one-tenth of its peak. The domestic market alone cannot absorb the development costs of four new energy models.

The technology dynamic has also reversed. Dongfeng previously disclosed that Shenlong Automobile's R&D functions have been fully transferred to Dongfeng's central research institute, with Dongfeng's new energy platform to be integrated in 2026. Consequently, foreign brands are no longer tied to foreign platforms. New vehicles can be developed using Chinese technology and supply chains, carry Jeep and Peugeot badges, and seek global sales through Stellantis NV's channels.

The Jeep brand is also making a comeback. In 2022, after GAC Fiat Chrysler suffered consecutive losses, Stellantis NV terminated Jeep's joint venture production in China and recognized an impairment of approximately 297 million euros, subsequently relying mainly on imported vehicles for its China operations. Four years later, Jeep is resuming China production, but not on the old model of foreign-imported products with Chinese manufacturing and sales. The new vehicles use Dongfeng technology, existing plants handle production, and Stellantis NV provides the brand and distribution.

At its 2026 Investor Day, Stellantis NV stated that the four models will be developed and produced at "China costs," with the project primarily financed through the Shenlong system, potentially becoming an increment to the group's sales, profits, and electrification transition. Stellantis NV avoids having to maintain a heavy-asset China business for Jeep anew; for Shenlong, the global market is essential for keeping existing capacity operational.

Shenlong Technology is not an isolated case. Stellantis NV established Leapmotor International with Leapmotor, placing Leapmotor products and Stellantis NV's global channels into a new joint venture. Changan Mazda, meanwhile, is selling its EZ-6, developed with Chinese electrification technology, in Europe under the Mazda6e name. The former sends a Chinese brand overseas; the latter fits Chinese technology into a foreign brand. Shenlong Technology embodies elements of both.

A "new joint venture force" is thus emerging. These ventures no longer simply divide responsibilities by equity stakes and the China market; instead, they configure technology, capital, brands, capacity, and channels around specific vehicle models. The purpose of collaboration has also shifted from being confined to the China market to developing cars in China and selling them globally.

Under the targets Stellantis NV has set for its collaborations with Dongfeng and Tata, the goal is to sell 100,000 localized models worldwide by 2028.

Four decades into the joint venture era, the scarce resources exchanged by the parties have changed. Previously, foreign partners traded technology and brands for access to China's market and production capacity. Today, China's new energy platforms, development speed, and supply chain costs are capabilities multinational automakers need, while foreign partners contribute brands and global channels to complete commercialization.

For China's auto industry, going global now means more than just exporting self-owned brand vehicles; its technology, supply chain, and manufacturing capabilities are also entering the global product systems of multinational automakers.