Stellantis said it would consolidate its auto financial services in China into a wholly owned auto finance company (AFC) and sell its stake in DPCAFC, the 15 year old auto finance joint venture between Stellantis, DPCA and Dongfeng, to Dongfeng, subject to regulatory approval.

The new structure would align with the automaker’s Dare Forward 2030 ‘asset light business model’ in China and support the new DPCA business model.

The move followed the restructuring of financial services in Europe and the United States.

“As we continue our push to drive profitable growth in China, we need to also reset our financial services offering in the country, as we have done in other major markets,” said Stellantis CEO Carlos Tavares in a statement.

“This move will greatly support our revival plan in the country.”

The deal should be completed during the second half of 2022 once approved by regulators.

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A Reuters report noted Stellantis had struggled to sell cars through its China-based joint ventures which have just 0.5% of the local market.

DPCA, the joint venture with Dongfeng, sold 100,567 vehicles in 2021, more than doubling annual sales but the joint venture with GAC sold 20,123 units last year, a 50% decline, the news agency said.