Jakarta –
A joint venture of Stellantis and Guangzhou Automobile Group (GAC) that produces automobiles Jeep in China it will declare bankruptcy. Jeep’s bankruptcy in China was communicated by the company after it continued to experience a decline in performance in the world market.
GAC approved the bankruptcy filing and said it will not significantly affect operations. Meanwhile, Stellantis closed its partnership with GAC in July, a month after it said it would increase its ownership to 75% from the previous 50%.
SUV sales Jeep Cherokee and Compass Crossovers have dropped dramatically over the past four years. Sales of these cars fell by 50% in 2021 to 20,396 vehicles.
So in 2022, car sales will be less than 2,000 vehicles. Also in May it sold only one vehicle in China.
“Chinese carmakers should be subject to the same tariffs when exporting cars to Europe this month as European carmakers when exporting to China,” said Carlos Tavares, CEO of Stellantis.
Foreign automakers in China are under pressure as the market has moved rapidly to electric vehicles and domestic brands are starting to dominate the market. This failure is the last chapter for the brand Jeep of China.
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(fdl / fdl)
