Carlos Tavares – China: “I don’t want to be in the shoes of GM or Volkswagen”

Carlos Tavares, CEO of Stellantis, specified his analysis of the evolution of the business model in China, which has become “very political” and may present an Iran- or Russia-type scenario.

“It’s been a few years since I was able to identify a change in behavior among our business partners in China through discussions and negotiations. The politicization of the Chinese business model has been at a peak for 5 years (…) Selling vehicles in China is becoming increasingly difficult for all Western players“With these words, Carlos Tavares spoke about the current business climate in China at a round table held at the presentation of the Stellantis Group’s half-year results.

DS, anecdotal sales in China

The French boss has therefore analyzed the development of vehicle sales in the Middle Kingdom in the first half of the year according to the nationality of the companies: “-20% for the Germans, -19% for the Americans, -14% for the Japanese, +11% for the Chinese, while The Rise of the French, +60%, mostly DS, is done in anecdotal volumes“. Our colleagues from autoactu.com report that the leader also believes that geopolitical tensions in this region will increase and lead to sanctions. “When it comes to mutual sanctions between the West and non-Western countries, the first victims are Western companies. We saw it in Iran or in Russia.”

Be careful not to get your fingers caught in the door

Stellantis, which focuses most of its operations on Europe and the United States and whose strategy in China is now called “Asset Light” (the group notably recently ended the joint venture that produced its Jeep SUVs in China), now has a very weak one Industrial presence in this country through a commercial subsidiary that sells imported vehicles, which is not the case with other car manufacturers. Carlos Tavares said: “Volkswagen and GM have a strong presence there and I don’t want to put myself in their shoes. I’d rather take shelter. We’re a western company and when it comes to cross-sanctions, I can’t get my fingers caught in the door.”

Published on 07/29/2022 updated 07/29/2022

Kaddouri Ismail

I am Ismail from Morocco, I work as a blogger and online marketer. I am also the founder of the “Mofid” site, in which I constantly publish many important articles in the field of technology, taking advantage of more than 5 years of experience working in the field. I focus on publishing in a group of areas, the most important of which are programming, e-marketing, digital currencies and freelance work.

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