“Our strategy anticipates the possibility of geopolitical tensions. 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?” Tavares told reporters at the Paris Motor Show.
AFP News reported that Stellantis has already ceased operations of a joint venture that produced Jeep SUVs in China upon failing to obtain a controlling stake. Meanwhile, the French automaker is in discussions concerning its Peugeot and Citroen brands with its local partner Dongfeng.
Notably, the traditional mass-market French automobiles have never been popular in China, compared to its German competitor Volkswagen. In fact, VW was able to sell 3 million cars in the country in 2021.
Tavares stated, “We’re still selling Jeep and Alfa Romeo vehicles built outside China very profitably” in the largest auto market in the world. He implies that Peugeot and Citroen might be able to use the same model.
“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.
Producers from Germany and Japan have mostly avoided the Paris Motor Show. However, several Asian automakers, including Vietnam’s VinFast and China’s Ora and BYD, have attended.
These Asian companies aim to supply European markets with more affordable electric vehicles.
By 2030, Stellantis projects to generate 20 billion euros ($19.6 billion) in sales in China through its 14 brands. However, Tavares claimed Beijing had treated them unfairly.
“The red carpet is rolled out for Chinese manufacturers in Europe, and that’s not how we’re welcomed in China. Import taxes on vehicles coming from China should be symmetrical with those applied to Western vehicles in China.”
He added that “we are in a world that’s fragmenting, states are trying to create bubbles. If we think these bubbles will close at some point, we’ll have to sell in Europe vehicles that are made in Europe. We will adapt.”
Nonetheless, Stellantis showcased new electric vehicles built in France at the Paris Motor Show on Monday, according to Reuters. During the event, President Emmanuel Macron also pushed for increased domestic production and proposed larger incentives for poorer families purchasing EVs.
