Chinese automaker GAC (Guangzhou Automotive Corp.) has reacted to an announcement made Thursday by Stellantis outlining its plans to increase its shareholding in the GAC-Stellantis joint venture, claiming the move is “not agreed.”
GAC says it learned of the announcement regarding the equity adjustment from Stellantis’ official website.
In the announcement, the American-Italian-French automaker says it plans to increase its shareholding in GAC-Stellantis from 50% to 75%, suggesting the increased equity “is a key element of Stellantis’ plan to set a new basis for its business in China.”
It also says “GAC and Stellantis have agreed to collaboratively complete the relevant formalities of the deal, which remains subject to the approval of the Chinese government.”
In a media release posted Thursday to its Chinese-based website, GAC rebuffs Stellantis' claims, saying it “deeply regrets that this is not agreed by us,” adding it will “strictly abide by the national policies and regulations and adhere to the principle of mutual trust.”
Established in 2010 under its former name GAC-FCA, the joint venture operated by GAC and Stellantis is headquartered in the Chinese city of Changsha. The existing shareholding structure gives each partner an equal 50% shareholding.
Current operations center around the production of Jeep models, including the Cherokee, Renegade and Commander, at a plant in Guangzhou for the Chinese market.
Moves are also under way to produce the new Compass at GAC-Stellantis’ Changsha plant, which previously manufactured Fiat models.
In September, Stellantis announced plans to streamline its Chinese operations with the creation of Stellantis Jeep.