Stock Market News

GAC hits back at Stellantis over collapse of Chinese JV

2022.07.29 18:02

GAC hits back at Stellantis over collapse of Chinese JV
FILE PHOTO: Stellantis CEO Carlos Tavares holds a news conference after meeting with unions, in Turin, Italy, March 31,2022. REUTERS/Massimo Pinca/File Photo

(Reuters) – China’s Guangzhou Automobile Group (GAC) said on Friday it was “deeply shocked” by critical comments from Stellantis about the end of their joint venture in China, adding it was Stellantis that “didn’t fulfill its commitment”.

Last week, Stellantis and GAC said they would end their loss-making venture producing Jeep SUVs in China only four months after Stellantis said it would raise its stake in the business. In January, GAC reprimanded Stellantis for announcing plans to raise its stake to 75% from 50%, stating the parties had not signed a formal agreement.

On Thursday, while reporting financial results, Stellantis CEO Carlos Tavares said over the last five years “the political influence” in doing business with its partners in China was growing by the day.

Tavares added that GAC did not want to abide by the binding memorandum of understanding the companies had signed and “preferred to be in breach, rather than execute it. We took the conclusion that of course trust was broken.”

GAC responded on Friday, saying the venture had not been able “to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years.”

GAC said in a statement that it was “deeply shocked” by Tavares’ remarks and Stellantis “didn’t fulfill its commitment” to keep the joint venture operating. GAC added it hoped the companies would terminate the venture “in a pragmatic and responsible manner.”

Stellantis officials declined to comment on Friday about GAC’s statement.

With less than 1% market share, Stellantis has been looking to revamp its strategy in the Chinese auto market. In its 2030 business plan released in March, Stellantis said it would adopt an “asset-light” business model in China, still aiming to increase revenue but via imports rather than domestic production.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,843.48 0.41%
ethereum
Ethereum (ETH) $ 3,354.05 0.84%
tether
Tether (USDT) $ 1.00 0.04%
solana
Solana (SOL) $ 260.18 0.09%
bnb
BNB (BNB) $ 653.50 3.71%
xrp
XRP (XRP) $ 1.55 12.16%
dogecoin
Dogecoin (DOGE) $ 0.466166 18.27%
cardano
Cardano (ADA) $ 1.10 24.80%
usd-coin
USDC (USDC) $ 1.00 0.07%
staked-ether
Lido Staked Ether (STETH) $ 3,354.23 0.70%
tron
TRON (TRX) $ 0.209606 5.21%
avalanche-2
Avalanche (AVAX) $ 43.68 20.73%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 8.54%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,972.16 1.06%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,666.44 0.24%
the-open-network
Toncoin (TON) $ 5.60 1.21%
stellar
Stellar (XLM) $ 0.436643 55.64%
polkadot
Polkadot (DOT) $ 7.59 22.64%
bitcoin-cash
Bitcoin Cash (BCH) $ 538.59 8.79%
chainlink
Chainlink (LINK) $ 16.95 10.63%
sui
Sui (SUI) $ 3.61 0.96%
weth
WETH (WETH) $ 3,353.19 0.86%
pepe
Pepe (PEPE) $ 0.000021 0.48%
leo-token
LEO Token (LEO) $ 8.56 2.51%
litecoin
Litecoin (LTC) $ 102.08 12.99%
near
NEAR Protocol (NEAR) $ 6.29 9.86%
aptos
Aptos (APT) $ 12.66 5.37%
uniswap
Uniswap (UNI) $ 10.41 11.45%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,531.39 0.98%
hedera-hashgraph
Hedera (HBAR) $ 0.150722 13.54%
internet-computer
Internet Computer (ICP) $ 11.06 15.09%
crypto-com-chain
Cronos (CRO) $ 0.192521 0.78%
usds
USDS (USDS) $ 0.999013 0.27%
ethereum-classic
Ethereum Classic (ETC) $ 29.57 5.87%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.538916 16.01%
render-token
Render (RENDER) $ 7.91 7.29%
kaspa
Kaspa (KAS) $ 0.156673 3.03%
bittensor
Bittensor (TAO) $ 524.84 4.80%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.11%
bonk
Bonk (BONK) $ 0.00005 3.08%
whitebit
WhiteBIT Coin (WBT) $ 24.63 0.97%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.33 4.02%
vechain
VeChain (VET) $ 0.04317 31.53%
mantra-dao
MANTRA (OM) $ 3.77 1.99%
dai
Dai (DAI) $ 1.00 0.06%
dogwifcoin
dogwifhat (WIF) $ 3.40 2.81%
arbitrum
Arbitrum (ARB) $ 0.827036 4.62%
cosmos
Cosmos Hub (ATOM) $ 7.91 19.91%
blockstack
Stacks (STX) $ 2.05 5.39%
filecoin
Filecoin (FIL) $ 5.12 9.32%