Multinational automotive manufacturer Stellantis announced Wednesday it is pulling out of its Chinese auto finance joint venture (JV), the most recent move in the company’s reshaping of its Chinese operations, reports Nikkei Asia. Stellantis will sell its effective half ownership in Dongfeng Peugeot Citroen Auto Finance to its Chinese partner, state-owned Dongfeng Motor Group for RMB 3.72 billion ($584 million). Pending approvals, Stellantis aims to complete the deal by year-end.
While Stellantis’ production joint venture with Dongfeng has been losing money, the finance venture posted a net profit of RMB 305.21 million in 2021. Dongfeng said on Wednesday that it sees great growth potential in China’s consumer auto finance market, adding that “financial support for the group’s vehicle sales needs to be further improved.”
The group’s auto finance operations last year generated RMB 3.65 billion in operating profit, up 25% from the year before, while Dongfeng’s passenger vehicle unit, which focuses on own-brand cars, posted an operating loss of RMB 6.39 billion.