On September 16, Germany’s Handelsblatt, citing sources, reported that German automaker Opel had suspended plans to expand in China due to geopolitical tensions.
Image source: Opel official website
An Opel spokesman confirmed the decision to the German newspaper Handelsblatt, saying the current auto industry faces many challenges. In addition to geopolitical tensions, China’s strict epidemic prevention and control policies have made it more difficult for foreign companies to enter an already competitive market.
It is reported that Opel also lacks attractive models and thus has no competitive advantage over local Chinese automakers, however, this is all foreign automakers trying to penetrate the Chinese auto market, especially the Chinese EV market. common challenges.
More recently, China’s auto demand has also been hit by power constraints and lockdowns in some major cities due to the outbreak, causing foreign companies such as Volvo Cars, Toyota and Volkswagen to either temporarily suspend production or adopt closed-loop production systems, which have had a certain impact on car production.
European investment in China is becoming increasingly concentrated, with a few large companies stepping up their investments and new entrants tending to shy away from increasing risks, according to a recent report by research firm Rhodium Group.
“In this case, given the scale of sales required to have a real impact, Opel will shelve plans to enter the Chinese market,” Opel said.
Opel used to sell models such as the Astra compact car and the Zafira small van in China, but its former owner, General Motors, pulled the brand from the Chinese market due to slow sales and concerns that its models would compete with GM’s Chevrolet and GM vehicles. Competitive models from the Buick brand (in part using Opel’s craftsmanship).
Under new owner Stellantis, Opel has begun to consider expanding beyond its core European markets, leveraging Stellantis’ global sales and financing infrastructure to promote its German “blood.” Still, Stellantis has less than 1 percent of the Chinese auto market, and is less focused on the Chinese market as the company streamlines its global structure under Chief Executive Carlos Tavares.
Post time: Sep-20-2022