LONDON/MILAN : The bankruptcy of Stellantis' Jeep joint venture in China could spell trouble for other global automakers whose output has plunged over the last five years in the world's largest car market, as domestic players rapidly overtake.
In the run-up to the deal, Chief Executive Carlos Tavares had said no carmaker could afford not to be in China and the expectation was the two companies would together be better equipped to make headway there. Other mainstream brands, including Volkswagen, General Motors, Ford, Mitsubishi and Hyundai, have also seen plant usage fall by anything from over 30 to more than 50 per centage points in the last five years.At the same time, global carmakers' sales in China have dropped as local rivals have taken off because the Chinese automakers embraced EVs and consumer-centric in-car software far more quickly.
This means that as the global giants Volkswagen, Ford and GM work to bring more EV models to market, they face stiff competition from younger Chinese rivals that have adapted quickly to shifting consumer tastes. "Volkswagen continuously assesses these special factors and adjusts its production planning at an early stage if necessary," the carmaker said.