a joint venture of Stellantis in China goes bankrupt

a joint venture of Stellantis in China goes bankrupt

Stellantis wants to develop its strategy in the middle empire, the largest market in the world but with multiple constraints.

Stellantis, born from the Peugeot-Citroën and Fiat-Chrysler merger, and its Chinese partner GAC announced on Monday the filing for bankruptcy of a joint venture in China, at a time when the automotive group is reviewing its country strategy. Both parties haveapproved a resolution authorizing [leur] joint venture to file for bankruptcy“, indicated in a press release the group with 14 brands, evoking a “deficit context“. Guangzhou Automobile Group Co (GAC) for its part specified that this decision of the shareholders had been taken unanimously.

The joint venture manufactured Jeep vehicles. “Stellantis will continue to provide quality services to current and future Jeep brand customers in China.“Nevertheless reassured the European manufacturer. Jeep, which is being electrified, is one of the main avenues of development in China for the group, which is aiming for 20 billion euros in turnover there by 2030.

Electric development

China is the largest automotive market in the world. Foreign brands have to deal with regulatory constraints and a multitude of local players who have gained in competitiveness, particularly in the electric market.

Earlier this month, Stellantis chief executive Carlos Tavares warned that his group may eventually stop producing cars in China, depending on how negotiations with local partners turn out. But he 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 has never managed to break through, while Volkswagen sold more than 3 million cars there in 2021.

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