Tuesday, May 24, 2022

Stellantis to raise stake in China JV with GAC to 75%

The logo of Stellantis is seen in this image provided on November 9, 2020. Communication FCA /Handout via REUTERS/File Photo

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MILAN, Jan 27 (Reuters) – Stellantis (STLA.MI), plans to increase its stake in its 50-50 joint venture in China with Guangzhou Automobile Group (GAC) (601238.SS)to 75% as part of its efforts to tackle one of the weak spots in its business.

The deal remains subject to approval by the Chinese government, Stellantis, the world’s number four carmaker said on Thursday.

Additional details on Stellantis’ plan for the Chinese market will be disclosed as part of a global strategic plan to be presented on March 1. read more

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Boosting its business in China, the world’s biggest auto market, is one of the areas analysts want addressed when Chief Executive Carlos Tavares unveils his detailed strategy.

Created through the merger of Fiat Chrysler and Peugeot-owner PSA at the start of last year, Stellantis’ needs to do better in China where its market share remains almost negligible when compared to rivals.

Stellantis said last year it would create a simplified structure to develop the Jeep brand in China.

The carmaker added on Thursday it would keep working with GAC to grow the brand in the country.

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Reporting by Agnieszka Flak
Editing by Keith Weir

Our Standards: The Thomson Reuters Trust Principles.


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