Chinese dealers that promote China-built Jeep autos are asking Stellantis for thousands and thousands of pounds in compensation following the automaker stopped developing the brand name in China, in accordance to a letter signed by the sellers found by Reuters.

Stellantis is overhauling its method in China soon after agreeing to file for bankruptcy of its Jeep joint undertaking with nearby partner Guangzhou Vehicle Team (GAC) in October.

Stellantis has considering that stated it would pursue an import-centered enterprise model in China.

Its “unilateral” selection to terminate the partnerships with the dealers has caused their companies to make losses and led to layoffs, according to the letter signed by 26 sellers as of Tuesday.

Stellantis declined to comment on the subject, but explained in emailed remark it abides by Chinese regulation and that its joint venture’s personal bankruptcy software was going through neighborhood courtroom proceedings.

GAC declined to remark.

Cao Wei, president of Lianyungang Xuncheng Automobile Sales and Company Co., and one of the letter’s organisers, informed Reuters that more dealers would sign up for the petition and approximated they would in the end seek out whole compensation of 900 million yuan ($130 million) from Stellantis.

They are inquiring Stellantis to fork out them 18 million yuan for each shop influenced to protect the losses such as preliminary investments and severance payments and to refund their deposits and pay product sales rebates, the letter showed.

Cao said Stellantis experienced refused to pay back what he referred to as the “basic invoice”, which consists of deposits and sales rebates, to at the very least 50 sellers who had been authorised by the joint venture to promote the locally produced Jeep vehicles in China.

The Jeep joint venture’s Chinese shareholder experienced agreed to shell out 50% of that monthly bill to all sellers, but Stellantis experienced refused to pay the rest, as it did not recognise them as its authorised dealerships, Cao reported.

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