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Is Jeep Moving Production to China?

Is Jeep Moving Production to China?

Auto, Aviation & Transportation

That is what many auto analysts assumed over the last couple of years. That in fact Jeep would move its entire operation to China for cost savings. However, now the opposite occurs.

Jeep leaves China!

Incredibly direct and open comments from the CEO of Stellantis, which owns the Jeep brand, are worth reading. CEO Carlos Tavares decided to close its only Jeep factory in China, because of the heavy political influence from Beijing — and the real risk of sanctions or other negative treatments from around the world. 

At a recent press conference the CEO said as a result of China’s interference in production:

“We have been seeing over the last few years more and more political interference in the world of business in China,” he said. “We don’t want to be a victim of cross-sanctions as has been the case for other companies in other regions of the world recently.” 

In addition, the CEO went on to say:

“We see that for Western players, selling cars in China is becoming increasingly difficult…There is an absolutely major shift in the Chinese market.”

“We have two big competitors, Volkswagen and GM, who are very present in China…I wouldn’t want to be in their place.”

In conclusion, is this a potential template for other companies to follow? Moreover, as they craft strategies for how to communicate about and deal with increasing political tensions.

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Is Jeep Moving Production to China?

Auto, Aviation & Transportation