A Chinese JV runs out of charge.
Stellantis, the mega-merger between FCA and PSA, said today that the “lack of progress in the previously announced plan for Stellantis to take a majority share in their joint venture” has resulted in the GAC Group and Stellantis to start figure out how to terminate the joint-venture that produces and distributes Jeep products in China.
Stellantis and GAC will proceed to an “orderly termination of local Jeep production, while Stellantis will recognize a non-cash impairment charge of approximately €297 million in first half 2022 results.” (AutoInformed.com: Chinese GAC Group to Build Jeep Models in China)
The Jeep brand’s Wrangler had record Chinese sales in 2021 but overall Jeep sales of 20,357 (-49%) declined for the fourth straight year. The Jeep product lineup, however, was recognized as No. 1 in APEAL and Vehicle Dependability (VDS) and No.2 in Initial Quality (IQS) by JD Power’s study among mainstream brands in China.
The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified line-up of imported vehicles. Stellantis has dubbed this an asset-light approach. (AutoInformed: Stellantis Doubles China Sales, Bolsters and Consolidates Aftermarket as Jeep Sales Plunge)
AutoInformed on
Tilt! Stellantis and GAC to Stop Jeep China JV
A Chinese JV runs out of charge.
Stellantis, the mega-merger between FCA and PSA, said today that the “lack of progress in the previously announced plan for Stellantis to take a majority share in their joint venture” has resulted in the GAC Group and Stellantis to start figure out how to terminate the joint-venture that produces and distributes Jeep products in China.
Stellantis and GAC will proceed to an “orderly termination of local Jeep production, while Stellantis will recognize a non-cash impairment charge of approximately €297 million in first half 2022 results.” (AutoInformed.com: Chinese GAC Group to Build Jeep Models in China)
The Jeep brand’s Wrangler had record Chinese sales in 2021 but overall Jeep sales of 20,357 (-49%) declined for the fourth straight year. The Jeep product lineup, however, was recognized as No. 1 in APEAL and Vehicle Dependability (VDS) and No.2 in Initial Quality (IQS) by JD Power’s study among mainstream brands in China.
The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified line-up of imported vehicles. Stellantis has dubbed this an asset-light approach. (AutoInformed: Stellantis Doubles China Sales, Bolsters and Consolidates Aftermarket as Jeep Sales Plunge)
AutoInformed on