Posted on 07/30/2022 11:53:53 AM PDT by BenLurkin
The carmaker is implementing an “asset-light” strategy in the country because of concerns that rising political tensions could lead to sanctions in a conflict between China and the rest of the world...
The CEO’s candid comments offer an explanation for Stellantis’s announcement last week it’s leaving a 12-year manufacturing partnership with state-owned Guangzhou Automobile Group. The exit raises uncomfortable questions about what the future may hold for foreign manufacturers in China.
The war in Ukraine has disrupted supply chains in Europe, and the lengthening list of sanctions targeting Russia is a grim reminder of what could happen if China were to assert itself in Taiwan. Business for carmakers including Stellantis, Volkswagen AG and General Motors in the country is becoming more challenging as local manufacturers including BYD Co. Li Auto Inc. and Nio Inc. are catching up fast, including with a slew of fully electric offerings.
Tavares acknowledged that the Jeep joint venture was racking up losses but said the company’s reasons for leaving run deeper.
The venture had produced the Jeep Cherokee, Renegade, Compass and Grand Commander models primarily for the domestic market. Stellantis will instead ship an electrified lineup of different Jeep vehicles to Chinese dealers.
(Excerpt) Read more at autoblog.com ...
They think it’s any better here?
Is Jeep even relevant anymore?
The Chinese just use the foreign companies to access their IP. Then make copies of their products. They improve their own models and then command their populace to buy their own brands. so the foreign companies are stripped and broken. They’re forced out basically.
rinse repeat.
this has been going on for decades.
Mysteries of mysteries as to why companies don’t learn.
They are in a no win situation in china. they exchange short term gains for long term losses.
Westerners still can’t grasp how complete and total the CCP’s control over society is. If there is anything that draws their interest or ire, they will totally crush you.
China is un-investible.
Fiat-Peugeots not selling well in China?
I wonder if it would be possible to make a vehicle without any parts from china ?
How about Taiwan ?
HTH could anyone with half a brain expect a different outcome after our experts go over there and conduct real-time tutorials for decades. It was the vastly most likely result from day one.
I own 2. The rare models that some Jeep owners covet. On China, I am 100% sure they will copy the structure of the vehicle and produce once Jeep / Stellantis leaves China. That’s what the chinks do: they copy or steal, they dont create original stuff.
Jeep must be plenty relevant. Their top model lists at $90,000. Some people must be buying it.
If they copy the rare models that some Jeep owners covet, they will be producing better products than the post-Fiat acquisition products.
Exactly. Not selling mine.
Aside from the slave wages, why would any manufacturer want to do their thing in China?
Probably a good thing given things are about to seriously heat up with PelosiIdiot going to Taiwan which is only uniting everything in China against the US and a full scale state industrial and military resolve to move on Taiwan (given momentum towards Taiwan declaring independence).
Buckle up!
Jeep is like Subaru; very popular in particular locales, like the Rocky Mountains. Go check out Moab sometime.
“They think it’s any better here?”
I was thinking that too.
They are all over the place here in northern Alabama.
Yes, it's possible. It will require bringing manufacturing of all domestic car parts back to the states.
“China is un-investible.”
Thank you sir. May I have another?
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