Stellantis’ China joint venture to file for bankruptcy

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• The shareholders of the GAC-FCA Joint Venture, Guangzhou Automobile Group Co., Ltd. and Stellantis N.V. (NYSE:STLA) will file for bankruptcy to reverse its dwindling sales in the country.
• An unprofitable joint venture that made and distributed the Jeep brand in China would continue to provide services to existing and future Jeep brand customers in China.
• Stellantis had booked a noncash impairment charge of equivalent to almost $300M in its first-half results as a result of ending the JV.
• The JV was first formed in 2010 in a 50-50 split between GAC and Fiat SpA. Fiat became part of Stellantis following a merger with the French PSA Group.