China is the largest automotive market; this attracts global industries to enter China to grab market share. The automotive industry has long invested in the Chinese market.
Some people may not recognize the new name of Stellantis NV group, which is a merger of two major companies, Fiat Chrysler and BPS Citroën.
However, chances are a good many people know of Stellantis’ many global automotive brands, including Alfa-Romeo, Jeep, Dodge, and Ram, as well as more familiar brand names in other markets: Citroën, Peugeot, and Opel.
The world’s fourth-largest automotive group, Stellantis NV CEO Carlos Tavares, recently expressed dissatisfaction with the Chinese market.
Jeep launched a joint venture with China’s Guangzhou Auto (GAC) in 2010 and established a production line.
According to the mainland media, Stellantis only announced in January this year that it intends to increase its shareholding in the joint venture with GAC from 50% to 75%.
Even though an agreement has been signed, the final increase in shareholding has not been implemented and it is likely to be officially blocked.
Carlos Tavares said, [quote] “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.” [end quote]
Jeep closed its production lines, although it will still sell products in the future through imports, probably not to abandon the Chinese market but rather to adopt a passive strategy. The chain effect may cause the closure of Jeep’s production lines to spread to other brands.