Stellantis seeks to change gears in China by announcing the start of the project to increase its stake in joint venture which it shares with the local GAC. But the Chinese do not seem to have, at least in words and now, the same intention of changing the pact with the automotive multinational.
The intention of the company born from the merger between the FCA and PSA groups is that of increase its stake in the JV from 50% to 75%. This is a fundamental step forward for Stellantis, which aims to build new foundations for its business in the Asian country. The Chinese market is the real weakness of a global group that is present everywhere. In Europe it is among the leaders, in the United States it represents the derivation of one of the original Big Three and in South America it collects significant results every year. The deal with GAC is subject to the approval of the Chinese government. S.According to Automotive News, GAC said the two sides have not signed a formal agreement and criticized Stellantis for making the statement. “The note was not approved by us and the GAC group deeply regrets it“: Very clear words.
Recall that in September of last year it was Stellantis herself who announced the creation of a simplified operational organization “Stellantis Jeep”to develop the US brand in China: the joint venture should be able to support the efficiency of this integrated “One Jeep” strategy in the Asian country, focused on the Changsha production plant which is currently preparing the launch of the Compass model. “GAC Group and Stellantis will continue to work closely together for to grow the profitable business of the brand in China – reads an official Stellantis note – Further details on Stellantis’ plans for the Chinese market will be announced in the global strategic plan on March 1, 2022 ″.
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