Carlos states Stellantis may end Chinese production, Dongfeng-PSA JV on chopping block?

[AlexB]

Car giant Stellantis may stop building vehicles in China, chief executive Carlos Tavares said Monday, citing building tensions with the West as a deterrent to investment there.

"Our strategy anticipates the possibility of geopolitical tensions," Tavares told reporters at the Paris Motor Show.

"There have already been several times where we've been thrown out of a country when Western sanctions are imposed... can we be sure that the stability of relations between China and the world is guaranteed?" he added.

Stellantis has already dropped a joint venture that built Jeep SUVs in China after failing to take a controlling stake, and is in talks with local partner Dongfeng about its Peugeot and Citroen brands.
"We're still selling Jeep and Alfa Romeo vehicles built outside China very profitably" in the world's largest car market, Tavares said, suggesting the same model could work for Peugeot and Citroen.

"If we take our strategy all the way, we don't need any factories in China. In a world of growing tensions, we don't need to create vulnerabilities," he added.”

If they “take it all the way”, Dongfeng-PSA JV will be close, just like GAC-FCA JV.

Stellantis CEO says group may end China production

Car giant Stellantis may stop building vehicles in China, chief executive Carlos Tavares said Monday, citing building tensions with the West as a deterrent to investment there.

news.yahoo.com

 

[cygnus]

Ha ha ha. Even bumbling GM makes China work by selling enough parts, breaking even in their China operations, and getting their cheap trim parts for US vehicles made there.

 

[AlexB]

Ha ha ha. Even bumbling GM makes China work my getting their cheap trim parts made there.

The same GM that can’t money in South America.
South America is Strong point for FIAT, FCA and Stellantis.

 

[cygnus]

South America is totally irrelevant.

 

[AlexB]

South America is totally irrelevant.

Not to Stellantis bottom line.
Also 1/3 of that market is controlled by Stellantis.

 

[cygnus]

Huh? Last I looked, 2022 YTD SA contribution to net income was less than a billion.

 

[AlexB]

Huh? Last I looked, 2022 YTD SA contribution to net income was less than a billion.

China business for GM made $147 million vs Stellantis South America £1,002 billion in the 1st Half 2022.

GM Reports Second-Quarter 2022 Results

General Motors Co. (NYSE: GM) today reported second-quarter net income attributable to stockholders of $1.7 billion and EBIT-adjusted of $2.3 billion, in line with the earnings update the company issued on July 1. GM continues to expect to meet its full-year earnings guidance.

media.gm.com

https://media.gm.com/content/dam/Media/gmcom/investor/2022/jul/2022-Q2-Financial-Highlights.pdf

https://www.stellantis.com/content/dam/stellantis-corporate/investors/financial-reports/Stellantis_NV_20220630_Semi_Annual_Report.pdf

 

[AlexB]

Stellantis not having on-the ground facilities in China is great given how :
1: The momentum is with Local Chinese OEM’s & brands
2: Profitability peaked (see GM since 2017
3: Growth harder to come by
4: Possible U.S. Vs China war.