Stellantis will abandon a loss-making joint venture in China that made cars under its Jeep brand, after years of setbacks in the world’s biggest auto market and a frustrated attempt to take control of the partnership, reports the Financial Times.
The Franco-Italian carmaker said on Monday it would end the 12-year-old production tie-up with Chinese partner GAC and instead import Jeeps into China, with a focus on popular electric models. It will take a €297 million charge in its first-half results as a result of the exit.
The shift follows a long-running struggle by Stellantis, formed following the merger last year of Peugeot maker PSA and Fiat Chrysler (FCA), to make a dent in the Chinese market. Local competition has proved fierce in the country and some foreign manufacturers have struggled with excess capacity after a slowdown in sales in recent years.