(Yicai Global) July 19 -- Stellantis and Guangzhou Automobile Group have agreed to terminate their joint venture making Jeeps in China after the owner of Maserati and Chrysler failed to secure a controlling stake in the loss-making venture.

The pair are in talks to wind up GAC Fiat Chrysler, which makes and distributes Jeep products, Amsterdam-based Stellantis said in a statement yesterday. Stellantis will focus on distributing imported Jeeps in the country instead, it added.

The JV is coming to an end after GAC failed to approve Stellantis raising its stake to 75 percent from 50 percent. Stellantis announced the plan in January as a way to revive GAC Fiat Chrysler, which has underperformed in recent years.

The JV factory has been idle amid China’s recent Covid-19 outbreaks. Guangzhou-based GAC said yesterday that the venture has been unable to resume production since February.

Set up in 2010, after stellar initial sales GAC Fiat Chrysler became mired in debt. In 2020, it sold 40,000 vehicles, down from as many as 205,000 in 2017, while net assets of CNY1.3 billion (USD198.1 million) turned into net liabilities of CNY331 million (USD49.1 million).

Editors: Dou Shicong, Emmi Laine, Xiao Yi