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 ...
Good luck to Jeep trying to enforce their copyrights and patents in China. The Chinese market will soon be flooded with knockoff 7 Bar Grills.
I’ve been to the Indian HQ where they assemble the bikes years ago. Unlike HD dealers where they gouge you for every part (e.g, greedy CO HD dealer tried to charge me $900 for BOTH tires when all i need is one)
Maybe at that price, Jeep would go the extra mile and put some cushion in their rock hard seats.
I just saw a Jeep pull out my neighborhood. I wonder what motivated that.
You know better than to deal with the dealership unless absolutely necessary bro!
Get your point though.....can’t take your eyes off HD for a second.
I do most of my work myself......it ain’t rocket surgery. 😁
Correct.
All foreign companies will need to leave China. It’s unfortunate but very necessary. China’s philosophy is not freedom friendly.
On a side note, Jeep put Peugeot transmissions (AX-15) in the 90's Wranglers and it was awful. Better now and the 3.6L Pentastar is fantastic.
LOL Jeep is all about a stiff & harsh & noisy ride.
But the deluxe models may have some padding in the seats and reasonably quiet.
Irony can be pretty ironic. A company bailed out by taxpayers crying about government interference? HAHAHAHA. Still waiting for my “thank you” card from Lee.
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