DNFGF - Stellantis-GAC JV plant will close Dongfeng Motor to sell 36.1M STLA shares

Stellantis N.V. (STLA -1.3%) is exploring a new China strategy beginning with the closure of one of the two factories that are part of a joint venture between the company and Chinese automaker GAC Group. The plant's production will be transferred from the Guangzhou plant to one in Changsa to lower costs. The two factories have sold only 12,288 Jeep-branded vehicles so far this year, much less than their 328,000 annual production capacity. The Changsa plant has an annual production capacity of 164,000. Stellantis also operates a joint venture in China with Dongfeng Motor Group (OTCPK:DNFGF +4.6%). Dongfeng is planning to sell 36.1M Stellantis shares - about 1% of the 3.1B STLA shares outstanding. Stellantis hopes to launch Opel, a subsidiary offering fully-electric vehicles, in China soon. The company is experiencing production issues in Europe, having to shut down plants due to the chip shortage.

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Stellantis-GAC JV plant will close, Dongfeng Motor to sell 36.1M STLA shares