Chinese carmakers BYD, Leapmotor reportedly in talks to take over GAC-Stellantis Changsha plant
Chinese carmakers BYD, Leapmotor reportedly in talks to take over GAC-Stellantis Changsha plant

Chinese carmakers BYD, Leapmotor reportedly in talks to take over GAC-Stellantis Changsha plant

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Chinese carmakers BYD Company and Leapmotor are in talks with GAC about the possibility of taking over the Changsha plant of GAC-Stellantis, Chinese news outlet Cailianshe reported on Friday, citing sources familiar with the matter, without giving further details.

On July 18, Stellantis and GAC made announcement that they would terminate their joint venture GAC-Stellantis, headquartered in Changsha, Central China’s Hunan province.

GAC and Fiat formed GAC-Fiat in March 2010 on a 50:50 shareholding. Fiat and Chrysler merged in 2014 and the renaming of GAC Fiat to GAC Fiat Chrysler Automobiles.

In 2021, Fiat Chrysler Automobiles merged with PSA Group to form Stellantis, and the foreign shareholder of the joint venture became Stellantis.

GAC – Stellantis joint venture’s growth in China peaked in 2017 with annual sales of 220,000 units and after that, sales have declined to 125,000, 73,000 and 40,500 units from 2018-2020, respectively.

For 2021, GAC-Stellantis’ annual sales will be only 20,123 units. In the first half of 2022, the joint venture accumulated 822 units of production and 1,861 units of sales, down 89.35% and 84.18%, respectively, year-on-year.