Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
July 29, 2022 09:34 AM

Jeep's China partner blasts Stellantis CEO as joint venture crumbles

State-owned Chinese partner accuses European automaker of disrespecting customers in biggest auto market as dispute over failed Jeep venture escalates.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Stellantis CEO Carlos Tavares
    BLOOMBERG

    Stellantis CEO Carlos Tavares warned of growing risks of operating factories in China because politicians are increasingly meddling in business operations.

    Stellantis' state-owned Chinese partner accused the European company of disrespecting customers in the world’s biggest auto market in an escalation of a dispute over their failed Jeep venture.

    Guangzhou Automobile Group on Friday said comments Stellantis CEO Carlos Tavares made the previous day on how trust had broken down between the two companies over their Chinese manufacturing partnership were “unbelievable.”

    Several Stellantis ventures “failed to achieve success, which is the result of a lack of respect for customers in the Chinese automobile market,” GAC Group said in a statement.

    The latest twist in the months-long back-and-forth comes after Tavares on Thursday during earnings presentations and an interview with Bloomberg Television flagged growing risks of operating factories in China because its politicians are increasingly meddling in business.

    Stellantis announced last week it would shutter its only Jeep factory in China, saying it was an unprofitable enterprise best replaced with imports. Jeep is exiting as more established foreign auto brands have struggled to maintain their share of the market, raising questions about their long-term future in China.

    The joint venture “has not been able to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years,” GAC Group said.

    While Tavares acknowledged that the business was racking up losses, he said the company’s reasons for leaving ran deeper. The decision was rooted in “broken trust” with its local partner, as well as Chinese policy favoring the emergence of local brands, he said.

    While Stellantis had signed a deal to raise its stake in the GAC joint venture to 75 percent, GAC Group “did not do what it was supposed to do,” Tavares said. “So we considered that it was better to unwind.”

    A spokesman for Stellantis said an agreement to proceed to filing was signed by the company and GAC Group in February; he declined to comment further on the statement.

    The Chinese group said it didn’t file paperwork because there was “no consensus on relevant agreements,” and that Stellantis was the party not fulfilling its commitments.

    The venture had produced the Jeep Cherokee, Renegade, Compass and Grand Commander models primarily for the China market. Stellantis will instead ship an electrified lineup of different Jeep vehicles to its dealers in the country.

    RECOMMENDED FOR YOU
    Russians reluctantly embrace Chinese cars after Western brands depart
    Recommended for You
    Moskvich car 2022
    Russians reluctantly embrace Chinese cars after Western brands depart
    Dacia Sandero with new front grille 2023
    Dacia, MG gain from French demand for low-cost cars
    Smart #1 11.jpg
    Smart dealers optimistic about switch to agency direct-sales model
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us