Stellantis said on Monday that it will terminate the joint venture that manufactures and sells its Jeep brand in China and instead focus on selling imported Jeep vehicles in the country.
The reason, according to the Amsterdam-based automaker, is that it has not made headway in its intention to obtain a controlling stake in the joint venture with China's Guangzhou Automobile Group Co.
Stellantis intends to cooperate with GAC Group in an orderly termination of the joint venture formed in March 2010, which has been loss-making in recent years," it said.
As a result, it would record a non-cash impairment charge of about 297 million euros ($299.6 million) in its first-half results.
Stellantis announced in January that it planned to increase its stake in GAC-Stellantis from 50% to 75% after a regulatory change allowed for additional foreign investment in local joint ventures.
Stellantis stated that it will adopt an asset-light strategy to the brand in China, focusing on the sale of imported Jeep vehicles.