Benzinga | Jan 27, 2022 06:40AM EST

Stellantis Plans To Raise Stake In China JV To 75%

* Stellantis NV (NYSE:STLA) plans to increase its shareholding in the joint venture GAC-Stellantis to 75% from 50%. The financial terms were not disclosed.

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

* The move comes as a part of Stellantis' plan to set a new basis for its business in China.

* Stellantis noted the JV is now fit to support the efficiency of the integrated "One Jeep" strategy in China, focused on the Changsha manufacturing plant, which is currently preparing to launch the Compass model.

* Stellantis plans to announce details about its plan for the Chinese market within the global strategic plan on March 1, 2022.

* Price Action: STLA shares are trading higher by 2.43% at $19.83 in premarket on the last check Thursday.