Benzinga | Jan 27, 2022 05:18AM EST

Stellantis Announced Plans to Take Majority Share in Joint Venture with GAC in China; Stellantis to Raise Stake in GAC-Stellantis from 50% to 75%

StellantisN.V. today announced the plan to increase its shareholding in GAC-Stellantis from 50% to 75%. The announcement is a key element of Stellantis' plan to set a new basis for its business in China. GAC Group and Stellantis have agreed to collaboratively complete the relevant formalities of the deal, which remains subject to the approval of the Chinese government.

GAC-Stellantis is a joint venture formed between China Guangzhou Automobile Group Co., Ltd. (GAC Group) and Stellantis in March 2010.

In September 2021, Stellantis announced that it would create a simplified operating organization "Stellantis Jeep" to develop the brand in China. The JV is now fit to support the efficiency of this integrated "One Jeep" strategy in China, focused on the Changsha manufacturing plant, which is currently preparing to launch the Compass model. GAC Group and Stellantis will continue collaborating closely with each other to grow the brand's profitable business in China.

Additional details on Stellantis' plan for the Chinese market will be announced within the global strategic plan on March 1, 2022.