SHANGHAI -- Chinese dealers that sell China-made Jeep models are asking Stellantis for millions of dollars in compensation after the automaker stopped producing the brand in China, according to a letter signed by the dealers seen by Reuters.
Stellantis is overhauling its strategy in China after agreeing to file for bankruptcy of a Jeep joint venture with local partner Guangzhou Automobile Group in October.
Stellantis has since said it would pursue an import-based business model in China.
Its "unilateral" decision to terminate the partnerships with the dealers has caused their businesses to make losses and led to layoffs, according to the letter signed by 26 dealers as of Tuesday.
Stellantis declined to comment on the subject but said in emailed comment it abides by Chinese law and that its joint venture's bankruptcy application was going through local court proceedings.
GAC declined to comment. Stellantis announced the termination of the JV with GAC in July.