(Yicai Global) Oct. 31 -- The joint venture of Stellantis, the owner of brands such as Maserati and Chrysler, and Guangzhou Automobile Group intends to file for bankruptcy after sales at the maker of Jeep vehicles in China plunged over several years.

Stellantis and GAC have approved a resolution authorizing GAC Fiat Chrysler Automobiles to file for bankruptcy, the Amsterdam-based auto giant said today. Stellantis will continue to provide services to Jeep customers in China, it added.

The two agreed in July to terminate the JV after GAC failed to approve Stellantis raising its stake to 75 percent from 50 percent. In January, the latter had announced a plan to revive GAC-FCA.

GAC-FCA sold just 1,861 vehicles in the first half of this year, versus 222,300 in 2017. Revenue dropped 39 percent to CNY3.9 billion (USD536.6 million) last year from 2020, with total assets down nearly 26 percent at CNY8.7 billion.

Founded in 2010 to make Fiat-branded cars, GAC-FCA expanded production to Jeep vehicles in 2015. In the following years, the JV brought the Cherokee, Renegade, Compass, and Commander models to the Chinese market.

Editor: Futura Costaglione