Jeep closes down in China after filing for bankruptcy

Stellantis Group’s Jeep brand ceases to exist in China after low sales figures

To manufacture in China and enter the Chinese market, it is necessary to partner with a Chinese company, which is why it is very common for European or American automakers to create a joint venture with a local company and thus operate in the country.

This is the case of Jeep, which has maintained a joint venture since 2010 with GAC Group, and we said maintained because the company has declared bankruptcy.

This situation means the end of a history of more than 12 years where Jeep’s disastrous sales results in China have made Stellantis and GAC Group decide to cease production and commercial activity.

In terms of figures, they were getting worse and worse, and in 2021 they barely reached a sales volume of 20,000 vehicles, which meant a drop of more than 50% compared to sales in 2020, a year that was already a delicate one due to the COVID situation.

2022 was not a good year either, with sales figures continuing to fall to ridiculous figures, for example in May 2022 only one Jeep was sold in the whole of China and so far this year the sales figure did not exceed 2,000 units. This prompted Stellantis to announce last July the dissolution of its joint venture with GAC Group, leading to Jeep’s demise in China.

Stellantis’ CEO, Carlos Tavares, justified this decision on two clear principles: firstly, the poor and declining sales figures, and secondly, the loss of trust with its Chinese partner GAC Group.

As a result, Jeep has been declared bankrupt and the joint venture between Jeep and GAC Group has been dissolved, making it more than unlikely that Stellantis and GAC Group will work together again in the near future.

Initially this decision only affects China, while Jeep remains focused on launching its electrification strategy in Europe and the United States where the electric Jeep Avenger will be the first to arrive.

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