GAC agreed the partnership in 2010 with Fiat Chrysler, which later merged with PSA to kind Stellantis.
With lower than a 1 % share of the Chinese auto market, Stellantis has been trying to reshuffle its technique within the nation as a part of a broader simplification of its international construction underneath CEO Carlos Tavares.
In its 2030 marketing strategy launched in March, Stellantis mentioned it might undertake an “asset-light” enterprise mannequin within the nation, the place it additionally has a three way partnership with China’s Dongfeng.
The GAC enterprise, which noticed a 50 % decline in gross sales final yr, closed one manufacturing facility in March and the Dongfeng enterprise just lately closed two crops attributable to extra capability.
Stellantis goals for revenues in China to achieve 20 billion euros ($20.3 billion) by 2030, totalling 7 % of complete anticipated income, a steep leap from the three.9 billion euros generated in China, India and Asia Pacific in 2021.
Automakers equivalent to BMW and Volkswagen have raised their stakes in joint ventures with Chinese companions in recent times after the nation loosened rules which beforehand prevented overseas automakers from proudly owning a majority.
Stellantis mentioned in January that its plans to lift the stake have been topic to approval from China’s authorities.
Stellantis will acknowledge a non-cash impairment of round 297 million euros ($300 million) for its first half-year outcomes, the corporate mentioned.
“The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified lineup of imported vehicles,” Stellantis added.