Stellantis And Jaguar Land Rover Team Up For US Development

• Stellantis and JLR have signed a memorandum of understanding to develop products and technologies.
• The two will look for ‘synergies.’
• The partnership might result in shared platforms, technologies, or production facilities.

The late Sergio Marchionne would be smiling today. The former CEO of Fiat Chrysler Automobiles spent much of his career trying to merge his company with another. FCA would eventually unite with PSA Group in 2021, and now that entity, Stellantis, is teaming up with Jaguar Land Rover (JLR) in the United States.  

Today, Stellantis and JLR announced that they have signed a non-binding Memorandum of Understanding “to explore opportunities to collaborate on product development in the United States.” The press release from Stellantis does not detail what that partnership could look like, but the pair will explore “synergies across product and technology development.”

Exciting stuff.  

Stellantis CEO Antonio Filosa said the deal could result in “meaningful benefits for both sides while remaining focused on delivering the products and experiences our customers love.”

Photo by: Dodge

The Partnership Possibilities

Neither automaker clarified why the pair is seeking to collaborate now, but several potential factors, such as tariffs, could be at play. JLR produces zero vehicles in the United States and had to pay £410 million ($549.3 million at today’s exchange rate) in additional tariffs last year, forcing the automaker to raise prices and delivery charges.

Collaborating could include sharing technologies and platforms or rebadging products. It might also involve producing JLR vehicles in the US. Less than two years ago, Stellantis had several underutilized factories operating far below capacity, which is costly.  

Land Rover Range Rover Sport SV

Photo by: Land Rover

The head of JRL, PB Balaji, said that working with Stellantis would allow the company to “explore complementary capabilities in product and technology.” The automaker has “long-term growth plans for the US market,” which has recently become its largest market.  

Stellantis has announced its partnership ahead of its Investor Day on May 21, when Filosa will lay out his vision to fix the company. It’s rumored the automaker will focus its investments in just four brands: Jeep, Ram, Peugeot, and Fiat, with collaborations and partnerships playing a crucial part.  

---

---

The European automaker also announced today a joint venture with Dongfeng, a state-owned Chinese automaker. The Voyah luxury brand will build hybrid and electric vehicles at a Stellantis plant in France.  

---

Motor1’s Take: Stellantis and JLR are an unlikely couple, but these are unusual times. The ever-changing automotive industry is forcing companies to get creative to ensure they can still build and sell the products that people want. 

We want your opinion!

What would you like to see on Motor1.com?

Take our 3 minute survey.

– The Motor1.com Team