Stellantis said shareholders of its loss-making joint venture producing Jeep vehicles in China have approved it to file for bankruptcy.
The European automaker said in a statement that it fully wrote down the value of its investment in the business in its first-half 2022 results, adding that it would continue to provide services to existing and future Jeep brand customers. in China.
Stellantis had ended the joint venture with Guangzhou Automobile Group Co (GAC) in July, just months after announcing it would increase its stake in the company to 75% from 50%.
In the following days, GAC attacked Stellantis, saying it was “deeply shocked” by Stellantis’ critical comments about the end of their joint venture in China.
When releasing financial results in July, Stellantis CEO Carlos Tavares said that over the past five years, “political influence” in business relations with its partners in China has been increasing day by day. He also added that he doesn’t see any major long-term impact from the company’s decision to sever the joint venture with GAC.