Stellantis will increase its stake in the GAC-Stellantis joint venture it operates in China.
In a statement, the car manufacturer announced its stake will swell from 50 per cent to 75 per cent. Stellantis and Guangzhou Automobile Group Co. will complete all the relevant formalities of the deal but it will still need to be approved by the China government.
Interestingly, GAC doesn’t seem particularly fond of the change to the partnership.
“GAC Group learned from the official website of Stellantis about its announcement on the equity adjustment,” the automaker said in a statement issued to Auto News. “This announcement is not approved by us, and GAC Group deeply regrets it.” The company added that it will “strictly abide by national policies and regulations” and promote the venture “in accordance with the principals of mutual trust and win-win results.”
Recent changes made in China mean foreign car manufacturers no longer need to operate 50-50 joint venture partnerships in the country. These changes have already seen BMW increase its share in its Brilliance joint venture while Daimler recently announced it will drop its stake in its joint venture with BYD from 50 per cent to just 10 per cent.
Stellantis will reveal a new global strategic plan on March 1 and analysts hope that it will reveal how the company plans to grow its presence throughout China. Some analysts say Stellantis can better leverage the Jeep and Maserati brands throughout the country and could also use China as an export base to the rest of Asia. Moreover, it could also deepen its ties with Foxconn.