Stellantis partners JLR on new car development for US market

Stellantis and JLR have announced a deal to collaborate on new car development in the US. In a shock deal announced today (20 May) on the eve of Stellantis's Investor Day presentation, they have agreed to explore "collaboration opportunities to create synergies across product and technology development, leveraging the companies’ complementary strengths to create value for both organisations". The landmark collaboration deal is the third Stellantis has announced in the last week, having confirmed plans to build Peugeot and Jeep models at joint-venture partner Dongfeng's plant in China, and then in turn to build the Chinese firm's Voyah EVs at one of its own factories in France. Stellantis is working to make partnerships with other manufacturers a central part of its business strategy, as part of a move to fill capacity at its existing production network, benefit from others' technology innovations and expand its market coverage. The deal is a non-binding memorandum of understanding, and neither Stellantis nor JLR has yet given details of specific areas in which they could collaborate. Stellantis tomorrow is expected to give details of a revamped investment strategy that will place more focus on the Peugeot, Fiat, Jeep and Ram brands - in line with their higher market footprints compared with other marques in the portfolio. Given the US-market focus of the new arrangement with JLR, and the British firm's parallels in positioning with Jeep and Ram, it's possible that their 4x4s could ultimately share technology and componentry with Land Rover SUVs. JLR has engineered two new platforms for use in upcoming electric SUVs: the mid-sized EMA, which will underpin the upcoming Range Rover Velar and Land ROver Defender Sport EVs; and the larger MLA, which underpins both the ICE and upcoming EV versions of the flagship Range Rover. It's possible that the deal could result in these platforms underpinning new Jeep and Ram models - a move that would help JLR to recover some of the significant costs that went into their development while allowing Stellantis to more quickly and cost-effectively differentiate its 4x4s from their more mainstream crossover siblings (like the Peugeot 3008 and Citroën C5 Aircross, which use the STLA Medium platform). However, the announcement doesn't clarify whether the deal extends as far as a platform-sharing arrangement. Nor does either firm indicate that the partnership includes the potential for JLR to leverage any of Stellantis's factories to build its cars Stateside and swerve the 10-15% import tariffs that it currently pays on the UK- and EU-built cars that it sells in the US, its biggest global market. Stellantis CEO Antonio Filosa said: “By working with partners to explore synergies in areas such as product and technology development, we can create meaningful benefits for both sides while remaining focused on delivering the products and experiences our customers love." JLR CEO PB Palaji meanwhile said that "collaboration will play an important role in unlocking new opportunities" for his company. "Working with Stellantis allows us to explore complementary capabilities in product and technology development that support our long‑term growth plans for the US market.”

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Stellantis partners JLR on new car development for US market

Potential for JLR to share tech with Jeep and Ram as two manufacturers "leverage complementary strengths"

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Stellantis partners JLR on new car development for US market

Potential for JLR to share tech with Jeep and Ram as two manufacturers "leverage complementary strengths"

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