Stellantis has closed its only Jeep factory in China, accusing Beijing of interfering in its operations, CEO Carlos Tavares said Thursday, according to Bloomberg.
The automaker is implementing a policy of “limited assets” in China due to concerns that international political tension could lead to escalation and sanctions between China and the rest of the world, the Stellantis executive said in an interview on Bloomberg TV.
“We’ve seen in recent years more and more state involvement in doing business in China,” Tavares said. “We don’t want to fall victim to some sanctions tug-of-war as has happened to other companies in other parts of the world recently,” he added.
His statement explains Stellantis’ announcement last week of ending a 12-year production partnership with China’s state-owned Guangzhou Automobile Group. The company’s exit raises uncomfortable questions about the future of foreign manufacturing companies in China.
In addition to fears of what might happen if China attacked Taiwan, given what has happened to Russia after its invasion of Ukraine, automakers such as Stellantis, Volkswagen and General Motors are facing increased competition from their Chinese counterparts. such as BYD, Li Auto and Nio, which have become highly competitive, including in the field of electric cars.
Tavares acknowledged, however, that the Jeep production joint venture was unprofitable and that the reasons for closing the plant have deeper causes.
The unit produced Jeep Cherokee, Renegade, Compass and Grand Commander models, mainly for the Chinese market.
Source: Capital
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