Stellantis may stop production in China – Dealer Ops

Citroen is one of the brands that Stellantis may start importing to China rather than manufacturing there.

IMAGE: Stellantis

Stellantis may end car production in China due to geopolitical concerns and local rivals grabbing more market share, importing cars from the US or Europe instead, Bloomberg reports.

The development follows Stellantis’ decision earlier this year to pull the Jeep joint venture out of its Chinese plant, calling the strategy “asset-lightening”, the same term it is now using to describe a potential new approach in China for Peugeot and Citroen. brands.

Local car manufacturers, including BYD Co. and Geely Automobile Holdings, are producing an increasing number of electric cars and making it difficult for Stellantis, Volkswagen and other manufacturers to maintain their positions in China.

Western automakers are also mulling sanctions against Russia over the war in Ukraine, suggesting that such penalties could be applied to China if it takes a similarly aggressive stance toward Taiwan.

Stellantis CEO Carlos Tavares said Monday at the Paris auto show that European officials should impose restrictions on Chinese automakers similar to those faced by foreign rivals in China, echoing European concerns that Chinese automakers are gaining a foothold on the continent.

Some Western automakers, however, continue to invest in China, including BMW, which is moving production of the Mini electric hatchback from the UK there and assembling the crossover through a partner there.

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