September 7, 2021
BEIJING (Reuters) – Stellantis NV’s Chinese joint venture with GAC will close one of its two Chinese factories by March 2022, GAC told Reuters, as Stellantis restructures operations in the world’s biggest auto market where it struggles to sell cars.
The joint venture, which currently has capacity to make 328,000 vehicles a year, sold only 12,288 in the first seven months this year.
It will transfer production from Guangzhou to Changsha to “increase utilisation rate of plants and lower cost”, GAC said in a statement.
The joint venture was launched by GAC and FCA, which merged with PSA to become Stellantis. A Stellantis spokesperson declined to comment.
As well as the GAC partnership, Stellantis also operates a joint venture with Dongfeng Motor Group, which sold 47,788 cars between January and July.
(Reporting by Yilei Sun and Brenda Goh; Editing by David Goodman and Mark Potter)
Source Link Stellantis joint venture with China’s GAC to close one of two plants
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