Stellantis to Close Chinese Jeep Production Facilities
Stellantis is closing down its production facilities of its Jeep brand in China to focus on importing the models instead.
It cited the “lack of progress in the previously announced plan for Stellantis to take a majority share of the GAC-Stellantis joint venture” as a key to its decision. While some automakers, such as the Volkwagen Group, appear to be able to make Chinese JVs work, Stellantis’s tie-up with GAC, formed in 2010, did not and was loss making in recent years.
Now Stellantis intends to cooperate with GAC Group in an orderly termination of the JV and will recognize a non-cash impairment charge of approximately €297M ($299) in its first half 2022 results.
It will also 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”. It plans to offer an enhanced electrified line-up of imported Jeep vehicles focused on Chinese customer expectations.
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_
