Stellantis to end Jeep production in China after failing to take control of GAC joint venture

The 12-year-old loss-making GAC Fiat Chrysler joint venture sold only 20,000 units last year, just 6 per cent of its annual capacity

Stellantis will focus on selling its imported line-up of electric cars in China as part of its new strategy

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The 2022 Jeep Grand Cherokee 4xe. Stellantis said on Monday that it would stop producing Jeeps in China after ending its joint venture with GAC Group. Photo: TNS

Published: 7:30pm, 18 Jul 2022

Stellantis, formerly Fiat Chrysler, will stop building Jeep vehicles in China and has agreed to terminate an unprofitable joint venture with GAC Group amid stiff competition in the world’s largest car market.

The decision, which will result in a non-cash impairment charge of €297 million (US$301 million), was made after Stellantis failed to take a majority stake in GAC Fiat Chrysler.

It also represents a shift in Stellantis’ China strategy, which will see the company focus on electric vehicles (EV) in the mainland where sales are growing rapidly.

“The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified line-up of imported vehicles meant to exceed Chinese customer expectations,” Stellantis said in a statement on Monday, adding that the move to end the venture with Guangzhou-based GAC was in line with its asset-light approach.

Stellantis, the world’s fifth-largest carmaker by sales, had announced a plan in January to raise its stake in the GAC Fiat Chrysler to 75 per cent from 50 per cent. Photo: AFP

The venture, founded in March 2010, has been losing money in recent years, and the two partners will implement an “orderly termination”, Stellantis said.

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