Stellantis joint venture with GAC to close Chinese automotive plant

September 8, 2021

The joint venture has sold only 12,288 in the first seven months this year of its Jeep-branded SUVs (Courtesy GAC FCA)

Stellantis NV’s venture with Chinese automaker GAC Group is expected to close one of its two factories in China by next March, reports Reuters. Carlos Tavares, Stellantis CEO, said the company is preparing an operational restructure in China after struggling to reach sales goals. The new strategy, scheduled for implementation by the end of the year, includes the introduction of its Opel brand, offering fully electric vehicles.

The joint venture has the capacity to make 328,000 vehicles a year, but sold only 12,288 in the first seven months this year, all Jeep-branded SUVs. Production will be transferred from Guangzhou to Changsha in order to “increase [the] utilisation rate of plants and lower cost”, as stated by GAC. The new factory reportedly has the capacity to make 164,000 vehicles a year.

As the competition accelerates in China’s automotive market, multiple joint ventures between international automakers and local partners have cut operations as a result of a decline in sales, including Mazda Motor’s venture with FAW. Hyundai Motor’s venture with BAIC sold one factory to electric vehicle maker Li Auto and, last year, Renault SA shut its venture with Dongfeng less than five years after the start of production. In 2018, Suzuki Motor exited its only Chinese venture.

www.stellantis.com

www.gac.com.cn

Latest Industry News

Download the latest issue of PM Review

Our latest issue is now available to download in PDF format, free of charge.

As well as an extensive Powder Metallurgy industry news section, this 124-page issue includes the following exclusive articles and reports:

  • PowderMet2021: A cautious return to normality for North America’s PM industry
  • A ‘hidden champion’ of PM: Celebrating a century of innovation and success at Plansee
  • An industry old-timer’s view on the question of vehicle electrification, misleading messaging and the status of PM
  • Diversity, sustainability, efficiency: How two of Japan’s Powder Metallurgy SMEs are thriving in a challenging landscape
  • Designing AC motors for the electric vehicle revolution? Forget laminations, think Soft Magnetic Composites
  • A route to the sustainable production of battery materials with 6K’s plasma technology
  • More information

Industry News

E-newsletter

Sign up to our free e-newsletter, sent weekly to industry professionals around the world. We'll also let you know each time a new issue of PM Review magazine is available.

Subscribe for a FREE digital magazine

PM Review is the leading international magazine for the Powder Metallurgy industry.
Published four times a year, it is available as a free download or through a print subscription

Connect with us

Powder Metallurgy: The original net-shape production process

Powder Metallurgy components are relied upon by a wide variety of manufacturing industries, from automotive to power tools, household appliances, chemical engineering, filtration and more.

The main reason for the technology’s success is its cost-effectiveness at producing high volumes of net-shape components, combined with its ability to allow the manufacture of products that, because of the production processes, simply cannot be manufactured by other methods.

To discover more about how the technology has revolutionised component production, browse our Introduction to Powder Metallurgy.

Latest industry news

Copy link