MILAN, Sept. 14 (Class Editori) -- Stellantis wants major control on activities in China. According to Bloomberg, the automaker formed from the merger between Fiat Chrysler and PSA Group is in advanced discussions with state-owned partner Guangzhou Automobile Group. The 50-50 venture produces Jeep vehicles for the Chinese market and deliveries of locally made models plunged to 44,000 units in 2020, down 45% compared to the previous year.
Due to disappointing levels of demand, Stellantis closed one of the two factories of the JV with Beijing subsidiary to centralize the production in Changsha. Currently, the automaker aims to directly manage operations by becoming the majority shareholder, as new Chinese regulations should allow starting from 2022.
The conquest of greater autonomy on local operations could represent the first step of CEO Carlos Tavares' new strategy for China. So far, in fact, neither FCA nor PSA have had much luck in the former Celestial Empire, where in H1 2021 Stellantis only sold 50,000 cars, 0.5% of the total. Weakness in the world's leading car market concerns the manufacturer, with Volkswagen, BMW and Daimler generating enough profits in China to sustain the huge investments needed for the twin green and digital transitions.
(Source:Class Editori)
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