Stellantis NV said Monday that it will end the joint venture that makes and distributes its Jeep brand in China and focus on selling imported Jeep cars in the country.
The Amsterdam-based car maker STLA, +2.37% STLA, +1.91% said the reason is that it hasn’t made progress in its plan to take a majority share in the joint venture with China’s Guangzhou Automobile Group Co.
“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,” it said.
It will book a non-cash impairment charge of about 297 million euros ($ 299.6 million) in its first-half results as a result.
In January, Stellantis said it was planning to up its stake in GAC-Stellantis to 75% from 50% after a regulatory change made additional foreign investment in local joint ventures possible.
Stellantis said it will take an asset-light approach to the brand in China by focusing on selling imported Jeep cars.
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