The Chinese joint venture that Stellantis has with GAC Group will close one of its two factories in China by next March. The Reuters agency reported today noting how the joint venture sold only 12,288 vehicles in the first seven months of this year, all Jeep-branded sports vehicles, compared to a production capacity of 328,000 vehicles per year.
The joint venture will move production from Guangzhou to Changsha to increase capacity utilization and reduce costs. The Changsha factory has an annual production capacity of 164,000 vehicles, still far more than what the joint venture sells.
In addition to the partnership with GAC, Stellantis also operates a joint venture in China with Dongfeng Motor Group, which sold 47,788 cars between January and July.