Guangzhou Automobile Group blasts Stellantis CEO as Jeep joint venture collapses

The joint undertaking “has not been capable to establish a mutually honest working system tailored to the very aggressive environment in China in purchase to transform the adverse circumstance of steady losses in recent a long time,” GAC Group reported.

GAC added it hoped the firms would terminate the venture “in a pragmatic and responsible way.”

Stellantis officers declined to comment on Friday about GAC’s assertion.

When Tavares acknowledged that the enterprise was racking up losses, he claimed the company’s motives for leaving ran deeper. The selection was rooted in “broken trust” with its area lover, as perfectly as Chinese policy favoring the emergence of nearby makes, he explained.

Whilst Stellantis had signed a deal to raise its stake in the GAC joint enterprise to 75 %, GAC Group “did not do what it was supposed to do,” Tavares reported. “So we viewed as that it was improved to unwind.”

A spokesman for Stellantis stated an agreement to proceed to submitting was signed by the corporation and GAC Group in February he declined to comment additional on the assertion.

The Chinese group stated it did not file paperwork because there was “no consensus on related agreements,” and that Stellantis was the bash not satisfying its commitments.

The undertaking had developed the Jeep Cherokee, Renegade, Compass and Grand Commander designs mostly for the China market. Stellantis will in its place ship an electrified lineup of diverse Jeep automobiles to dealers in the state.

With significantly less than 1 percent of the Chinese market place, Stellantis has been looking to revamp its approach. In its 2030 business enterprise program introduced in March, Stellantis mentioned it would undertake an “asset-light” business enterprise product in China, even now aiming to improve revenue but by way of imports rather than domestic manufacturing.