Jeep cuts ties with GAC due to low sales volume 

Updated Jul 20, 2022

Same topic: Automotive Industry Updates

We’ll need to get our Jeep units from somewhere else in the future

If you’re a Jeep fan or have been following American conglomerate’s Stellantis’ car-making ventures, then you’ll have known that the said corporation has been partners with China-based Guangzhou Automobile Group (GAC) since 2010. Through this, GAC was able to produce the Renegade, Cherokee, Grand Commander, and the Compass in China. Recently though, the American brand has announced that it has cut ties with the Chinese brand. 

The Philippine-spec Jeep Compass is sourced from China via the Jeep-GAC partnership

As for the cause of this sudden separation, a Stellantis spokesperson said that the car maker’s leadership thought that “it was better to close the joint venture” due to years of losses and low sales volume. Also, since the two had been working together since 2010, the Stellantis-owned Jeep brand only managed to capture a 1 percent market share in the Chinese market.  

And according to Reuters, the Jeep-GAC Venture even saw a “50 precent decline in sales last year.” That’s on top of the fact that they also closed a plant back in March 2022.  

With the dissolution of the partnership, Jeep can no longer have its products manufactured in China. Stellantis did say however, that it will continue to sell Jeep products for the said region in the form of imports. 

Of note, this might affect the Philippine market as well, since Jeep Philippines does source the Compass as well as the Renegade from the plants owned by the now divorced Stellantis-GAC partnership. 

The Jeep Renegade sold locally is also from China

For now, we aren’t sure where Jeep Philippines will get their units. Then again, we can surmise that these might become a bit pricier compared to the China-sourced units.  

Remember that the Philippines market currently enjoys the fruits of the ASEAN-China Free Trade Area (ACFTA) agreement. And without that, the several Jeep products sold here will definitely see a price bump. This is especially true if these were sourced from the United States instead.  

For more automotive industry updates, keep it here on the Philippine’s largest automotive portal.  

Know more about Jeep Renegade

₱ 1,490,000 - ₱ 1,640,000

Explore

Cesar G.B. Miguel

Author

Cesar Guiderone B. Miguel was born and raised in Iligan City, Lanao Del Norte. He graduated in 2010 with a Bachelor of Arts in English degree from Mindanao State University - Iligan Institute of Technology. He previously worked as a freelance writer for various websites, as a member of the Iligan City Disaster Risk Reduction Management's training staff, and as a medical sales representative.

Facebook: https://www.facebook.com/goridus.goridus

View more