Stellantis’ Hong Kong-based partner Dongfeng has partially sold 1.15pc of its stake in the carmaker through an equity placement of about €600mn ($710mn). The European automaker’s Chinese joint venture partner GAC also plans to shut two facilities as part of restructuring operations in the Asian nation.
Dongfeng will continue to hold a 4.5pc share in Stellantis while Peugeot will increase its 7.2pc stake by 1.5pc. The company has sold 47,788 vehicles between January and July this year, noted media reports on Sep 9.
GAC has cited poor sales for closing two factories in China. The automaker closed its seven monthly volumes at a mere 12,288 units out of a total annual capacity of 328,000 units. The automaker will transfer its operational base from Guangzhou city, Guangdong to Changsha in Hunan. The latter facility can produce 164,000 units per year.
The partnership is Stellantis’ second in China, according to Tuesday’s media reports.