Stellantis is not the first automaker to get pushback from a local partner. When Volkswagen Group CEO Herbert Diess in 2019 said the German manufacturer may consider changing the ownership structure of a partnership with SAIC, the Chinese company responded by saying that the two parties never discussed that.
GAC, responding to the Stellantis announcement, said it would “strictly abide by national policies and regulations” and promote the venture “in accordance with the principles of mutual trust and win-win results.”
Stellantis, which was created through the merger of Fiat Chrysler Automobiles and Peugeot-owner PSA Group at the start of last year, is struggling across the board in China, where its market share remains almost negligible when compared to rivals.
Fixing the China business is a key area where analysts want to see Stellantis making progress when CEO Carlos Tavares unveils a new global strategic plan on March 1.
Analysts say the company could look to better leverage its strong Jeep and Maserati brands in China. It could also consider using China as an export base to the rest of Asia, or deepen ties with Foxconn beyond their current joint venture, they said.
The deal for Stellantis to take a majority stake in the joint venture with GAC is subject to approval by the Chinese government, Stellantis said in a statement on Thursday.
Reuters and Bloomberg contributed to this report.
