“Jeep’s Misadventure in China: A Joint Venture Gone Bust”

The Chinese government has officially recognized the bankruptcy of GAC-FCA, a joint venture between Fiat-Chrysler (prior to becoming Stellantis) and domestic automaker GAC. This marks the final step in the dissolution process after years of inefficient operations in the Chinese market.

The partnership between Fiat and GAC predates the Fiat-Chrysler merger. In 2014, a Jeep manufacturing plant was established in China, assembling models such as the Compass, Renegade, Cherokee, and Grand Commander for the domestic market.

The Grand Commander, a China-exclusive model, is an extended version of the Cherokee with a three-row seat configuration. It was positioned as the successor to the Commander, which was discontinued in the US.

In 2022, under the leadership of Carlos Tavares, Stellantis decided to cease operations at the Jeep plant in China. This decision was driven by low business efficiency, a significant decline in Western car sales in China, and escalating geopolitical risks.

The Jeep Gladiator Rubicon continued to be sold in limited quantities in China through imports before sales eventually ceased.

Despite the cessation of local production, Jeep maintains a presence in China through imports. Currently, the brand offers the Wrangler, Wrangler 4xe, Gladiator, and Grand Cherokee 4xe models to Chinese consumers.

In 2023, Stellantis shifted its focus to a new joint venture with Leapmotor, acquiring a 20% stake in the electric vehicle manufacturer. This collaboration provides Stellantis with access to cost-effective electrification technology and expands its electric vehicle portfolio in Europe. Meanwhile, Leapmotor gains a pathway to Western markets through Stellantis’ network.

While there are no immediate plans to introduce Leapmotor to the US market, Tavares has left the door open to the possibility of producing these vehicles locally.

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