GAC-Stellantis is a joint venture formed between China Guangzhou Automobile Group Co., Ltd. (GAC Group) and Stellantis in March 2010.

In a statement, Stellantis said that the move is to support its plans of a “One Jeep” strategy in China, focusing on the Changsha manufacturing plant. The first product to benefit from this plan is the new Compass (lead photo) which is due to launch soon. Analysts say that the move could mean Jeep would use China as its export base to the rest of Asia.

However, the move to take control of the Jeep joint-venture in China sparked pushback from GAC, opening a potential rift that could slow the carmaker’s plan to bolster sales in the biggest auto market.

“GAC Group learned from the official website of Stellantis about its announcement on the equity adjustment,” of the venture, the Chinese company responded in a statement. “This announcement is not approved by us, and GAC Group deeply regrets it.”

For its part, Stellantis said the deal had been agreed with its partner.

Currently, Jeep Philippines imports the Renegade and Compass SUVs from China. The Grand Commander is rumored to follow suit as well.

GAC, however, said the two parties had not signed a formal agreement and criticized Stellantis for issuing the statement.

The change within the JV comes as China removed a cap on foreign ownership that has for decades limited global carmakers’ access to the market. 

The deal for Stellantis to take a majority stake in the joint venture with GAC is subject to approval by the Chinese government, Stellantis said in a statement.