Stellantis, born from the merger of Peugeot-Citroën and Fiat-Chrysler, and its Chinese partner GAC announced on Monday the declaration of bankruptcy of a joint venture in China, at a time when the car group reviews its strategy in the country.
Stellantis and Guangzhou Automobile Group Co (GAC) have “approved a resolution authorizing [leur] joint venture to declare bankruptcy,” the group with 14 brands said in a press release, evoking a “deficit context.
GAC for its part specified that this decision of the shareholders had been taken unanimously.
Jeep is one of the main development areas in China for the group
The joint venture manufactured Jeep vehicles.
“Stellantis will continue to provide quality services to current and future customers of the Jeep brand in China,” said the European manufacturer, however.
Jeep, which is becoming electrified, is one of the main development paths in China for the group, which is targeting a turnover of 20 billion euros by 2030.
China is the world’s largest auto market.
Foreign brands have to deal with regulatory restrictions and a multitude of local players that have become more competitive, particularly in the electricity market.
Sell in China but no longer produce there
Earlier this month, Stellantis Chief Executive Carlos Tavares warned that his group could eventually stop producing cars in China, depending on how negotiations with local partners pan out.
But it would continue to market them in this country.
Stellantis is currently discussing with its partner Dongfeng the future of Peugeot and Citroën in the world’s largest market, where the group never managed to break through, while Volkswagen sold more than 3 million cars there in 2021.
Source: BFM TV
