Shanghai (ZXZC)- Stellantis, one of the world's leading automakers and a mobility service provider, announced on July 18 the plan to focus on distributing imported vehicles for the Jeep brand in China to leverage the brand's potential and iconic products through an asset-light approach.

The automobile group said the decision was made partly due to a lack of advancement in the previously announced plan for Stellantis to take a majority share of its joint venture with GAC Group.

Photo credit: Stellantis

Stellantis also revealed its intention to team up with GAC Group in an orderly termination of the joint venture formed in March 2010, which has been loss-making for recent years and recorded a confirmed non-cash impairment charge of roughly €297 million in the first half of 2022.

The group claimed that the Jeep brand would continue to strengthen its product offerings in China with an enhanced lineup of imported vehicles.

Stellantis announced in late January this year it planned to increase its shareholding in GAC-Stellantis joint venture from 50% to 75%. GAC Group afterwards replied that it had not signed any formal agreement with Stellantis about the stake adjustment.