Stellantis said shareholders in its loss-making joint venture that makes Jeep vehicles in China have approved filing for bankruptcy.
The European automaker said in a statement that it has completely devalued the value of its investment in the firm in results for the first half of 2022, adding that it will continue to provide services to existing and future Jeep brand customers in China.
Stellantis had closed the joint venture with Guangzhou Automobile Group Co (GAC) in July, just months after it said it would increase its stake in the business to 75% from 50%.
In the following days, GAC hit Stellantis, saying he was “deeply shocked” by Stellantis’ critical comments about the end of their joint venture in China.
While reporting financial results in July, Stellantis CEO Carlos Tavares said that over the past five years “political influence” in doing business with his partners in China has grown by the day. He also added that he has not seen a large long-term impact from the company’s decision to break up the joint venture with GAC.