Stellantis-GAC merger to file for bankruptcy

The merger between Stellantis and Guangzhou Automobile Group has decided to file for bankruptcy, Stellantis announced.

In a statement, Stellantis revealed that the two shareholders of the GAC-Fiat Chrysler Automobiles (FCA) joint venture both authorized the initiative “in a loss-making context.”

“Stellantis fully impaired the value of its investment in the GAC-FCA JV and other related assets in its first half 2022 financial results. Stellantis will continue providing quality services to existing and future Jeep brand customers in China,” Stellantis noted.

The announcement came after Stellantis bared plans of taking the majority share in the GAC-Stellantis partnership from 50-percent to 75 percent. The aforementioned collaboration started in March 2010.

But due to the lack of progress in the plan (as Stellantis previously mentioned), the European-based conglomerate revealed in last July its plan to “focus on distributing imported vehicles for the Jeep brand in China to leverage the potential of the brand and its iconic products through an asset-light approach.”

“The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified line-up of imported vehicles meant to exceed Chinese customer expectations,” Stellantis shared in an earlier announcement.

Locally, Stellantis’ presence is felt with the availability of vehicles under Chrysler, Dodge, Jeep, Maserati, Peugeot, and Ram. Meanwhile, GAC is under GAC Motor Philippines.  

Photos from Stellantis, GAC Motor

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