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)
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About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.