Jeep Maker’s Joint Venture in China Filing for Bankruptcy
Jeep maker Stellantis NV’s money-losing joint venture in China is filing for bankruptcy following its decision to dissolve the partnership and import its SUVs into the country.
Stellantis in January had said it intended to increase its share in the 50-50 partnership formed with Guangzhou Automobile Group Co. Ltd. in 2010 to 75%. The announcement caused a rift with GAC, which said it didn’t know about Stellantis’ plans to announce the ownership modifications, and because of slow progress on the negotiations and political influences, Stellantis reversed course in July, saying it would end the collaboration and no longer build Jeeps in China.
Stellantis in a statement on Monday said it will continue to provide service to existing and future Jeep customers in the country. The fully impaired value of its investment in the joint venture and related assets — which it previously placed around $294 million (297 million euro) — appeared in its financial results from the first half of 2022. Stellantis reports third-quarter revenue and shipments on Thursday.
