Jeep Pulls Out of China Over Government Meddling in Business

[WranglinNYC]

https://www.bloomberg.com/news/arti...of-china-over-government-meddling-in-business

Stellantis NV shuttered its only Jeep factory in China because local politicians are increasingly meddling in business in the world’s biggest car market, Chief Executive Officer Carlos Tavares said Thursday.

The carmaker is implementing an “asset-light” strategy in the country because of concerns that rising political tensions could lead to sanctions in a conflict between China and the rest of the world, the CEO said in an interview with Bloomberg Television.

“We have been seeing over the last few years more and more political interference in the world of business in China,” Tavares 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.”

The CEO’s candid comments offer an explanation for Stellantis’s announcement last week it’s leaving a 12-year manufacturing partnership with state-owned Guangzhou Automobile Group. The exit raises uncomfortable questions about what the future may hold for foreign manufacturers in China.

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