The CEO of the group Stellantis, Carlos Tavares, is relatively optimistic about the company’s future fortunes in China. To date, the largest car market in the world is a thorn in the side of the company resulting from the merger between FCA and PSA, especially considering the best-placed rivals such as Volkswagen.
According to Automotive News reports, Tavares said: “We are on track to catch up in China, some work has already been done“. In particular, Stellantis will act on its local structure, to have greater efficiency; and obviously it will be based on electrified models within the most well-known brands. Today the former FCA structures build and distribute Jeep models through a joint venture with GAC, while the former PSA part does the same with the Peugeot and Citroen brands, but thanks to the relationship with Dongfeng Motor Group. In the future, the two joint ventures are expected to merge, obviously based on local regulations on industrial mergers and competition.
What is currently known is that both joint ventures are performing poorly, and are operating below potential production capacity. Almost 1.5 million vehicles per year could be produced and sold in China, but the figures point to just a hundred thousand registrations. A massive intervention is therefore needed in terms of investment, and it is not certain that new brands currently in the so-called ‘oblivion’ can return or arrive in China.
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