Jeep has faced increasing interference from Chinese politicians in the country and has therefore decided to close its only manufacturing unit in China, Autoblog studies. According to the CEO of Stellantis in an interview with Bloomberg TV, the automaker is following an “asset-light” strategy within the country due to fears that escalating political tensions could translate into sanctions in a dispute between China and the rest of the world. The CEO made it clear that the company does not intend to be a “victim” of cross-sanctions like companies in different parts of the world with political tensions.
The CEO’s open remarks present a rationale for Stellantis’ claim last week that it is ending a 12-year manufacturing alliance with the government-owned Guangzhou Car Group. The closure of factories in China raises questions about the way forward for foreign producers in China.
It should be noted that the world is facing supply chain disruptions due to rising political tensions around the world and the Russian-Ukrainian crisis. Moreover, the variety of sanctions against Russia is perhaps a picture of what may be the future for producers in China.
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Business within the country is becoming increasingly difficult for automakers like Stellantis, Volkswagen AG and Basic Motors as local automakers like BYD Co., Li Auto Inc. and Nio Inc. are rapidly catching up, including with a wide range of absolutely electric options. , studies Autoblog. Jeep has been the producer of a number of widely offered models like Jeep Cherokee, Renegade and Compass which are widely offered in the global market.
It should be noted that China is probably one of the largest automotive markets in the world and has been a source of progress for domestic and international companies. Reinforcing the actual additional fact is the number of vehicles offered within the nation within the nation each year along with more than 2 million passengers. To add perspective, the quantity is considerably larger than the vehicles offered in various major auto markets like the United States, Japan, and India.