Carmaker Stellantis, manufacturer of the Citroën and Peugeot brands, is considering pulling out fully from China, CEO Carlos Tavares said on Monday.
The Stellantis CEO pointed out that the company is still selling Alfa Romeo and Jeep vehicles built outside China inside the country “very profitably.” If the company sticks to this strategy, it won’t need “any factories” in China.
Given the “growing tensions” in the world, Stellantis is prioritizing avoiding vulnerabilities. The world is fragmenting, with states trying to create their own “bubbles,” the CEO said.
“If we think these bubbles will close at some point, we'll have to sell in Europe vehicles that are made in Europe. We will adapt.”
Tavares also complained about how the “red carpet” is rolled out for Chinese manufacturers in Europe, while the reverse isn’t happening. Tavares wants vehicles exported from China to be taxed to the same extent that is applied to Western vehicle imports in China.
Ending Jeep Partnership, Fossil Fuel Debate
In July, Stellantis and China-based Guangzhou Automobile Group (GAC) announced the closure of their Jeep SUV venture that was losing money. Tavares blamed GAC for not wanting to abide by the Memorandum of Understanding the two companies had signed.Forcing a transition to electric vehicles will make car ownership very expensive for many people. “If you deny the middle classes access to freedom of movement, you are going to have serious social problems,” he said.
The European Union is in the process of finalizing a climate proposal package under which plug-in hybrids will be counted as low-emission vehicles only until 2030. Carmakers argue that they should be allowed to sell such vehicles for a longer period, given the billions invested in the technology.