Who's next? Chinese EVs drive Stellantis' Jeep off the road
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.
The first joint venture failure by a foreign brand in the electric vehicle (EV) era, the Oct. 31 bankruptcy filing marks a turning point in that Chinese carmakers are beginning to surpass the long-dominant international brands in giving consumers what they want.
"I do not expect Stellantis to be an isolated case," said Marco Santino, a partner at management consultants Oliver Wyman. "Probably almost all of the western carmakers will have to review the industrial logic of their presence in China."
Some elements of the Jeep joint venture's failure are particular to Stellantis - and the former car groups that feature among its 14 brands. But data compiled for Reuters by consultancy LMC Automotive expose a problem shared by a number of other global carmakers: plummeting Chinese plant usage.
The fewer cars a plant produces, the more likely it is to be loss-making.
The Jeep failure in China happened less than two years after Stellantis was formed by the merger of PSA and Fiat Chrysler.
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.
But Stellantis earlier this year said it would end its venture with local partner Guangzhou Automobile Group (GAC) , just months after saying it would raise its stake to 75% from 50%.
The U-turn leaves the world's No. 3 carmaker by sales with only limited Peugeot and Citroen production in China, which it
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