DUTCH multinational automotive manufacturing corporation Stellantis and state-owned Chinese joint venture partner Guangzhou Automobile Group (GAC) are feuding, reports Bloomberg.
The venture had produced the Jeep Cherokee, Renegade, Compass and Grand Commander models primarily for the China market. Stellantis will instead ship an electrified lineup of different Jeep vehicles.
Stellantis said it would close its only Jeep factory in China, saying it was a loss-making enterprise best replaced with imports. Jeep is exiting as more established foreign auto brands have struggled to maintain their market share, raising questions about their long-term future in China.
The Chinese company has accused the Dutch company of disrespecting customers in the world's biggest auto market in an escalation of a dispute over their failed Jeep venture.
GAC said comments Stellantis CEO Carlos Tavares made on how trust had broken down between the two companies over their Chinese manufacturing partnership were 'unbelievable'.
Several Stellantis ventures 'failed to achieve success, which is the result of a lack of respect for customers in the Chinese automobile market,' said GAC.
The latest twist in the months-long back-and-forth comes after Mr Tavares publicly cited growing risks of operating in China because politicians meddle in business decisions.
The joint venture 'has not been able to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years,' GAC said.
While Stellantis had signed a deal to raise its stake in the GAC joint venture to 75 per cent, GAC 'did not do what it was supposed to do,' Mr Tavares said. 'So we considered that it was better to unwind.'
A spokesman for Stellantis said an agreement to proceed to filing was signed by the company and GAC in February; he declined to comment further on the statement.
The Chinese group said it didn't file paperwork because there was 'no consensus on relevant agreements', and that Stellantis was the party not fulfilling its commitments.
SeaNews Turkey
The venture had produced the Jeep Cherokee, Renegade, Compass and Grand Commander models primarily for the China market. Stellantis will instead ship an electrified lineup of different Jeep vehicles.
Stellantis said it would close its only Jeep factory in China, saying it was a loss-making enterprise best replaced with imports. Jeep is exiting as more established foreign auto brands have struggled to maintain their market share, raising questions about their long-term future in China.
The Chinese company has accused the Dutch company of disrespecting customers in the world's biggest auto market in an escalation of a dispute over their failed Jeep venture.
GAC said comments Stellantis CEO Carlos Tavares made on how trust had broken down between the two companies over their Chinese manufacturing partnership were 'unbelievable'.
Several Stellantis ventures 'failed to achieve success, which is the result of a lack of respect for customers in the Chinese automobile market,' said GAC.
The latest twist in the months-long back-and-forth comes after Mr Tavares publicly cited growing risks of operating in China because politicians meddle in business decisions.
The joint venture 'has not been able to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years,' GAC said.
While Stellantis had signed a deal to raise its stake in the GAC joint venture to 75 per cent, GAC 'did not do what it was supposed to do,' Mr Tavares said. 'So we considered that it was better to unwind.'
A spokesman for Stellantis said an agreement to proceed to filing was signed by the company and GAC in February; he declined to comment further on the statement.
The Chinese group said it didn't file paperwork because there was 'no consensus on relevant agreements', and that Stellantis was the party not fulfilling its commitments.
SeaNews Turkey