Stellantis Stops Manufacturing Vehicles In China

In January of this year, Stellantis was all aglow about how successful its business in China was. "Since day one of Stellantis, we analyzed the situation together with our partners and we are now finalizing our plans for China, which we consider as a strategic market in terms of untapped potential," said Grégoire Olivier, chief operating officer for Stellantis China. So it's a bit of a shock that Stellantis has announced just six months later it will stop manufacturing vehicles in China. In a press release on July 18, the company said a "Lack of progress" in the previously announced plan for Stellantis to take a majority share in their joint venture led GAC Group and Stellantis to initiate discussions to terminate the joint venture that produces and distributes Jeep products in China. "Stellantis intends to cooperate with GAC Group in an orderly termination of the joint venture formed in March 2010, which has been loss-making in recent years, and will recognize a non-cash impairment charge of approximately €297 million in its first half 2022 results. The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified line-up of imported vehicles meant to exceed Chinese customer expectations." There will be a lot of ill will over Stellantis decision to pull out of its manufacturing agreement with GAC, which could dampen enthusiasm for Jeep products. At a time when we should all be cooperating to find an answer to a rapidly overheating planet, the nations of the world seem intent on squabbling with each other instead. Tesla has placed a major bet on manufacturing in China.