Stellantis says it plans to increase its shareholding in GAC-Stellantis from 50% to 75%.
The manufacturer says it is a “key element” of its plan to set a new basis for its business in China.
The change is possible due to a new regulatory framework, allowing additional foreign investment in existing JVs, starting from January, 2022.
GAC Group and Stellantis have agreed to collaboratively complete the relevant formalities of the deal, which remains subject to approval of the Chinese government.
GAC-Stellantis is a joint venture formed between China Guangzhou Automobile Group (GAC Group) and Stellantis in March, 2010.
In September, 2021, Stellantis announced it would create a simplified operating organisation, Stellantis Jeep, to develop the brand in China.
The automaker noted the JV is now fit to support the efficiency of the integrated One Jeep strategy in China, focused on the Changsha manufacturing plant, which is currently preparing to launch the Compass model.
GAC Group and Stellantis will continue working together to grow the brand’s profitable business in China.
Additional details on Stellantis’ plan for the Chinese market will be announced within the global strategic plan on 1 March, 2022.