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The joint company between the two automakers will soon declare bankruptcy. The joint venture's obligations, according to GAC, are close to $1 billion, or approximately 111% of the value of its assets.
Over the past four years, the company's revenues in China have fallen significantly, and the business itself has long been loss-making. In 2021, only 20.4 thousand cars were sold by the joint venture, compared to roughly 205 thousand in 2017. Only 1.8 thousand Jeep Cherokee and Compass vehicles have been sold by the company since the start of this year.
Stellantis highlighted that while they would still provide service for any current or future Jeep owners in China, the vehicles themselves would now be imported from abroad.
Due to the fact that Stellantis wrote off all investments linked to the JV in the first half of 2022, the suspension of production in China will have no impact on the company's future financial performance.
source: reuters.com
Over the past four years, the company's revenues in China have fallen significantly, and the business itself has long been loss-making. In 2021, only 20.4 thousand cars were sold by the joint venture, compared to roughly 205 thousand in 2017. Only 1.8 thousand Jeep Cherokee and Compass vehicles have been sold by the company since the start of this year.
Stellantis highlighted that while they would still provide service for any current or future Jeep owners in China, the vehicles themselves would now be imported from abroad.
Due to the fact that Stellantis wrote off all investments linked to the JV in the first half of 2022, the suspension of production in China will have no impact on the company's future financial performance.
source: reuters.com
