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Monday, July 18, 2022

Jeep Terminates Joint-Venture With GAC


Stellantis, the parent company of Jeep has announced the “orderly termination” of its joint-venture with GAC which has been producing Jeep vehicles since 2010.

This announcement comes less than one year after Stellantis publicly disclosed that it wanted to raise its stake in the joint-venture, much to the irk of GAC.

The Jeep-GAC joint-venture, which saw a 50 percent sales decline last year, closed one factory in March. It also closed two plants with another joint-venture partner, Dongfeng due to excess capacity.

This announcement puts into question recent moves by Jeep Philippines which has been sourcing products such as the Jeep Renegade and Compass from China. They also toyed with the idea of bringing in the Grand Commander before this announcement was made public.

Moving forward, Jeep will offer an “enhanced electrified line-up of imported vehicles” for the Chinese market. Closer to home, it’s understood that Jeep is toying with the idea to build some of its vehicles in Gurun, Malaysia where another Stellantis brand, Peugeot is currently being assembled.

5 comments:

  1. It's best to build and source products from its home country like Jeep should be made in America, Toyota should be made in Japan, Ferrari should be made in Italy, Volkswagen should be made in Germany, among others.

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    Replies
    1. They'd cost much more than they already do. Even Toyotas, the real ones, not the rebadged Dauhatsu's they sell here.

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    2. That was d case b4 globalization, for todays situation that was not feasible anymore.

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    3. Jeep is just moving its production in Malaysia..Jeep failed big time in China as its beaten by Great Wall and BAIC.

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  2. In the world of globalization, in any industry, only the brand is from the country where they are registered. Actual parts, assembly and parts manufacturing may be from somewhere in Asia if not China.

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