According to a Hong Kong Ming Pao report on the 29th, Tavaris, chief executive of Stellantis NV, a major European automaker, expressed dissatisfaction with the increasing political interference and decided to end the partnership with Guangzhou Automobile Group and close the only Jeep production plant in China.
Carlos Tavares admitted that the closure of the only Jeep factory in China was due to the growing involvement of local officials and concerns that rising political tensions between China and the rest of the world could lead to economic sanctions, the report said. , intends to implement an “asset-light” strategy in China.
“We’ve seen more and more political interference in the Chinese business community over the past few years, and we don’t want to fall victim to cross-sanctions like other companies have recently been doing in other parts of the world,” he said.
According to a report by the Wall Street Journal on the 19th, the move can be said to be a strategic reversal for Stellantis NV, and it also highlights the latest setback in the Western auto industry’s attempt to build a significant influence in China.
Stellantis’ decision, due to the lack of progress in acquiring a majority stake in the joint venture with Guangzhou Automobile Group, decided to withdraw completely and instead focus on the business of exporting and selling Jeep to China, saying that the joint venture has been in operation since March 2010. established, but has been losing money in recent years.
China is the world’s largest auto market, and Stellantis’ brands include Peugeot, which also makes Ram pickups.
Reuters reported on the 18th that Stellantis only announced in January this year that it intends to increase its shareholding in the joint venture with GAC from 50% to 75%.
GAC joined hands with Fiat Chrysler Automobiles (FCA) in 2010. Later, Fiat Chrysler Automobiles merged with French peer PSA Group to form Stellantis Automotive Group.