Shanghai (ZXZC)- GAC FIAT CHRYSLER Automobiles Co., Ltd. (hereinafter referred to as “GAC FCA”), Stellantis N.V.’s Chinese joint venture with GAC Group, will halt work at its Guangzhou-based factory, and shift the production to the factory in Changsha, the capital of Hunan province, according to a local media outlet.

Jeep Renegade; photo credit: GAC FCA

The shutdown is reportedly part of the plan for GAC Group to transfer the 20% share it holds in GAC FCA to Stellantis. According to the local report, both parties have negotiated on the share transfer and are going through relevant process.

After being reached for comment, GAC Group said this is a false report as the talks about share transfer are indeed underway, while the concrete percentage has not been decided yet. Meanwhile, the automaker also confirmed the plan of production line shift.

According to the plan revealed by GAC Group, the main production facilities of GAC FCA's Guangzhou factory will be transferred to Changsha factory in 2021. The deregistration of the joint venture's Guangzhou branch is scheduled to be completed by March 2022.

GAC FCA was incorporated in 2010 as a 50-50 partnership between FCA and state-owned Chinese automaker GAC Group. It currently has two complete vehicle manufacturing plants with a combined capacity of 328,000 vehicles per year. The Changsha-based one mainly builds the Jeep Grand Commander and its PHEV version, as well as the Jeep Cherokee; the Guangzhou plant manufactures the Jeep Renegade and the Jeep Compass.