Stellantis to Terminate Jeep China Joint Venture
18 Juli 2022 - 8:54AM
Dow Jones News
By Cristina Roca
Stellantis NV said Monday that it will end the joint venture
that makes and distributes its Jeep brand in China and focus on
selling imported Jeep cars in the country.
The Amsterdam-based car maker said the reason is that it hasn't
made progress in its plan to take a majority share in the joint
venture with China's Guangzhou Automobile Group Co.
"Stellantis 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," it said.
It will book a non-cash impairment charge of about 297 million
euros ($299.6 million) in its first-half results as a result.
In January, Stellantis said it was planning to up its stake in
GAC-Stellantis to 75% from 50% after a regulatory change made
additional foreign investment in local joint ventures possible.
Stellantis said it will take an asset-light approach to the
brand in China by focusing on selling imported Jeep cars.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
July 18, 2022 02:39 ET (06:39 GMT)
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