Source of the picture: Visual China On November 23, Lanjing Finance learned from the official website of Stellantis Group that Stellantis Group and Dongfeng Motor Corporation’s subsidiary, Dongfeng Motor International Limited, have confirmed that the two parties have executed a transaction. Stellantis will repurchase 50 million shares of Stellantis common stock from Dongfeng Group, with the total consideration for the above-mentioned shares being 934 million euros. Stellantis plans to cancel the above-mentioned shares after the completion of this transaction. After the completion of this transaction, Dongfeng Group will hold 49.2 million shares of Stellantis Group, accounting for 1.58% of Stellantis’ equity. It is worth noting that according to Dongfeng Group’s announcement data, it has cashed out more than 1.495 billion euros through the reduction of its holdings in the original PSA Group and Stellantis shares. After this transaction is completed, Dongfeng Group has cashed out a total of 2.429 billion euros through the reduction of its holdings. As early as 2014, Dongfeng Group purchased a 14% stake in PSA Group for 800 million euros, making it the largest shareholder alongside the French government and the Peugeot family, in order to help PSA Group out of the crisis. Subsequently, to ensure the smooth merger of PSA Group and Fiat Chrysler Automobiles, Dongfeng Group agreed to reduce its stake in PSA Group from 12.23% to 9.14%. After the official announcement of the merger of PSA and FCA, Stellantis Group was formally established as the world’s fourth-largest automaker. Stellantis Group owns no fewer than 14 automotive brands from FCA and PSA, and has an annual production capacity of 8.7 million vehicles. After the merger, Dongfeng Group’s holdings of PSA shares were all converted into Stellantis shares. As a result, Dongfeng Group holds a 4.5% stake in Stellantis. In January 2022, Dongfeng Group sold up to 40 million shares of Stellantis common stock for a total value of 732 million euros. After the transaction, Dongfeng Group still holds 3.16% of Stellantis shares. In July of the same year, Dongfeng Group signed a framework agreement with Stellantis Group regarding the 99.2 million shares of Stellantis common stock held by Dongfeng. According to this agreement, Dongfeng may make offers to Stellantis from time to time to sell all or part of the Stellantis common stock held by Dongfeng. Stellantis has the right but not the obligation to accept these offers. This “buy and sell at any time” and “no obligation to accept” framework agreement also suggests that the cooperation between the two parties may not be friendly. Especially in March of this year, Stellantis Group released its “Dare Forward 2030” strategic plan. Despite actively embracing electrification, with a goal of selling 5 million electric vehicles globally by 2030, the Chinese market, as an important player in the electrification market, was absent from the strategic plan. Although Stellantis Group CEO Carlos Tavares emphasized that the plan’s light asset business model can reduce fixed costs, there was no mention of electrification product plans for the Chinese market. On the other hand, Dongfeng Group has placed the development of its “independent brand” as a top priority. Especially in its “14th Five-Year Plan” development strategy, Dongfeng Motors aims to achieve sales of 1 million commercial vehicles, independent passenger cars, and new energy vehicles by 2025, with its independent brand scale entering the industry’s top 3. In terms of branding, the focus is on building the Lantu, Dongfeng Fengshen, and high-end electric off-road brand. “Completely independent, forward-looking research and development” has also become an important direction for the development of Dongfeng Group.