Stellantis Ends Joint Venture With GAC Group For Chinese Jeep® Production!

Marks The End Of The Chinese-Exclusive Grand Commander...

Robert S. Miller July 18, 2022

Due to a lack of progress in the previously announced plan for Stellantis to take a majority share of the GAC-Stellantis joint venture, Stellantis today announced its plan to focus on distributing imported vehicles for the Jeep® brand in China to leverage the potential of the brand and its iconic products through an asset-light approach.

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Stellantis intends to cooperate with GAC Group in an orderly termination of the joint venture formed in March 2010, which has been loss-making in recent years and will recognize a non-cash impairment charge of approximately €297 million ($300.6 million) in its first half of 2022 results.

The Jeep brand will continue to strengthen its product offering in China with an enhanced electrified lineup of imported vehicles meant to exceed Chinese customer expectations.

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So it appears that the Chinese-market exclusive, Jeep Grand Commander could come to an end, very soon. The Grand Commander (K8) was recently updated for the 2022 model year.

GAC-Stellantis currently produces four vehicles for the Chinese marketplace…

Jeep Grand Commander (K8) / Grand Commander PHEV (2018 to Present) – Changsha Assembly Plant
Jeep Cherokee (K4) (2015 to Present) – Changsha Assembly Plant
Jeep Compass (M4) (2016 to Present) – Guangzhou Assembly Plant
Jeep Renegade (BQ) (2016 to Present) – Guangzhou Assembly Plant

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justbekuz1 Jul 18, 2022 #1

WOW! Could someone tell us what this means: Stellantis today announced its plan to focus on distributing imported vehicles for the Jeep® brand in China to leverage the potential of the brand and its iconic products through an asset-light approach. What percentage of parts used for Jeeps there are China produced? With the past practices of China manufacturers, it wouldn't be out of the question for them to continue to assemble faux Jeeps with minor comestic changes. I wonder if the Commander will still be the next mini-Wagoneer Stateside?

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cygnus Jul 18, 2022 #2

"I wonder if the Commander will still be the next mini-Wagoneer Stateside?"

It will not.

What a flop/misread of the market. Similar 'results' are forthcoming from Foxconn joint venture - ie, big nothing-burger.

If they're serious about China they would take the upcoming Chrysler EVs (stretch them a bit), rebrand them as 'Imperial' with each model having a distinct Chinese name, make different front/rear ends, IPs, and infotainment customizations. Since that takes talent and money, they won't do it.

Mike201 Jul 18, 2022 #3

Seeing the U.S. Cherokee sales are tanking, maybe it is time to bring the 3 row Commander to the U.S. and rename it the Cherokee! Since the boost of sales in the similar Compass, Cherokee sales have tanked. The Cherokee needs new life. After looking at this Commander over the years, I would trade in my Cherokee in a heartbeat for this for the extra room and extra seats. Something needs to be done to save the Cherokee name, this would be a good fit. Something we can use in the line up, a smaller 3 row SUV.

TripleT Jul 18, 2022 #4

Like maybe the KM?

What the alternative for production? The Key issue here is that Chinese want a Jeep... like made in America Jeep. They have plenty of Chinese made CUVs including the Trumpchi.

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A AlexB Jul 21, 2022 #5

Like maybe the KM?

What the alternative for production? The Key issue here is that Chinese want a Jeep... like made in America Jeep. They have plenty of Chinese made CUVs including the Trumpchi.

FCA mistake was relaunching Jeep in China with the Cherokee.
But back then , the company didn’t have spare Grand Cherokee capacity to play with.

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