Stellantis closes manufacturing experience in China. after theframework agreement with Dongfeng, the chapter of the joint venture with Gac is also coming to an end. The plan for theacquisition of a majority stake in the Chinese group (going from 50 to 75%) has not made any progress, therefore Stellantis "will collaborate with the Gac Group for an orderly termination of the joint venture set up in March 2010, which has been making a loss in recent years, and will recognize a of non-monetary impairment of approximately 297 million euros in the results of the first half of 2022”, so informs a note from the group. The half-yearly report will be presented on 28 July.
In China Stellantis will focus “on the distribution of imported products for the Jeep brand in China, to exploit the potential of the brand and its iconic models through an 'asset-light' approach”. The Jeep brand, the automotive group specifies, "will continue to strengthen its offer in China with a wider range of electrified imported vehicles, destined to exceed the expectations of Chinese customers".
Stellantis closes with Gac and the shares fly
The news of the closure of production in China sends Stellantis shares flying, growing by 3,2% in Milan to 12,23 euros. On the Paris Stock Exchange, Stellantis gained 2,29% to 12,24 euros. For Equita, "the effects of this move need to be verified as a further demonstration of the difficulties in identifying a solution to increase penetration of the Chinese market". Also on the Chinese front, Stellantis announced on Friday evening that it had reached "an agreement relating to the 99,2 million shares of Stellantis ordinary shares owned by Dongfeng, which represent 3,16% of Stellantis' share capital".
