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Stellantis to terminate JV with GAC in China

The company has attributed the move “due to a lack of progress” and hence it will acquire the majority share of the GAC-Stellantis joint venture.

Stellantis - GAC

Stellantis, a leading automaker has announced that it will terminate its 22-year-old joint venture with GAC in China.

The company has attributed the move “due to a lack of progress” and hence it will acquire the majority share of the GAC-Stellantis joint venture. Going forward, Stellantis plans to focus on distributing imported vehicles for the Jeep  brand in China to leverage the potential of the brand and its iconic products through an asset-light approach.

Stellantis says it intends to cooperate with GAC Group in an orderly termination of the joint venture formed in March 2010, which has been loss-making in recent years, and will recognise a non-cash impairment charge of approximately 297 million euro (Rs 2,376 crore) in its first half 2022 results.

The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified line-up of imported vehicles.

The GAC FCA JV was formed for the production of Fiat brand passenger cars due to the demand for mid-size vehicles in China. In 2015, the company expanded its product portfolio and begin production of the Jeep Cherokee. The next year the company started transition to local SUV production in China with the production of the Jeep Renegade and the Jeep Compass at the Guangzhou plant of the joint venture.

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