Stellantis’ Chinese Jeep joint venture files for bankruptcy

The European carmaker said on Monday a Chinese joint venture that makes Jeep SUVs will file for bankruptcy, after its chief executive complained earlier this month political tensions with The West is influencing the business environment.

Earlier this month, Carlos Tavares said the auto giant would consider ending production in China, questioning whether the stability of relations between Beijing and the world could be guaranteed. are not.

The shareholders approved the joint venture to file for bankruptcy “in the face of losses,” Stellantis said.

The automaker terminated its Jeep joint venture with local partner Guangzhou Automobile Group (GAC) in July and is in talks with local partner Dongfeng about its Peugeot and Citroen brands.

Jeep car Venture“The assets are no longer sufficient to pay all the debts,” GAC said in a separate filing to the Hong Kong stock exchange on Monday, confirming that the joint venture will file bankrupt.

“Influenced by factors including the decline in product competitiveness, production and operations (of the GAC-Stellantis joint venture) have gradually fallen into difficulty,” GAC said.

Unlike German rival Volkswagen, which sold 3 million vehicles in China last year, Stellantis never broke out there.

The company aims to achieve sales of 20 billion euros ($19.6 billion) in China by 2030 with 14 of its brands, but Tavares earlier this month complained about unfair treatment from Beijing.

“The red carpet is spread out for Chinese manufacturers in Europe, and that’s not how we are welcomed in China,” he told reporters at the Paris Motor Show.

© 2022 AFP