SHANGHAI, Dec 14 Reuters Chinese dealers that sell Chinamade Jeep cars 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 its Jeep joint venture with local partner Guangzhou Automobile Group GAC in October.
Stellantis has since said it would pursue an importbased 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 venture39;s bankruptcy application was going through local court proceedings.
GAC declined to comment.
Cao Wei, president of Lianyungang Xuncheng Auto Sales and Service Co., and one of the letter39;s organisers, told Reuters that more dealers would join the petition and estimated they would ultimately seek total compensation of 900 million yuan 130 million from Stellantis.
They are asking Stellantis to pay them 18 million yuan for each store affected to cover the losses including initial investments and severance payments and to refund their deposits and pay sales rebates, the letter showed.
Cao said Stellantis had refused to pay what he called the basic…