Sunday, August 14, 2022
News Stellantis Will Revise its Jeep Plans for China

Stellantis Will Revise its Jeep Plans for China

Stellantis will continue to sell Jeep vehicles in China via imports

  • Initially, it planned to boost its stake in the GAC Jeep venture.

  • GAC will end local Jeep production shortly.

Jeep is one of if not the most recognized auto brands in the world. On the strength of its name alone, Stellantis delivers hundreds of thousands of new vehicles every year and there’s still plenty of room to grow. And growth in China was Stellantis’ plan until very recently.

2022 Jeep Grand Cherokee 4xe
2022 Jeep Grand Cherokee 4xe | Photo: Jeep

In January of 2022, Stellantis announced that it was looking to increase its existing stake in GAC Jeep in China from 50% to 75%. The goal was to increase its ties with GAC and make more money via the Jeep brand’s profitable business outlook.

Unfortunately for Stellantis, due to a lack of progress in the previously announced plan with GAC, the automaker will focus on distributing imported vehicles for the Jeep brand in China to leverage the potential of the brand and its iconic products through an asset-light approach.

2021 Jeep Wrangler
2021 Jeep Wrangler Rubicon 4xe | Photo: Olivier Delorme

This implies that GAC will thus have to terminate local Jeep production however there will be an impairment charge of approximately €297 million ($302 million USD) in the first half of 2022 results to be paid by Stellantis.

The asset-light approach will involve electrified 4xe Jeep models which will be sold via experienced Chinese Jeep dealers.

Back in March, Stellantis had outlined plans to increase its revenues in China to $20 billion euros annually by building its Jeep presence along with its existing Peugeot and Citroen brands. They are still a long way off as they sold only 125,000 new Jeeps there last year and held a sub-1% market share.

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai


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