Status: 09/16/2022 2:33 p.m
The Rüsselsheim-based group Opel cancels its entry into the Chinese car market. The background is said to be the increasing economic and political tensions with China.
Just over a year ago, the German car manufacturer Opel announced that it would enter the Chinese market. The group has put these plans on hold for the time being. In view of the current challenges for the automotive industry, it is more important than ever for Opel to focus on clear priorities, the company said today.
“Against this background and considering the volume required to make a real impact, Opel is currently on hold on plans to enter the Chinese market,” it said. However, the Rüsselsheim car manufacturer, which belongs to the Italian-American Stellantis group, is still preparing to enter new markets that promise good profitability even with smaller volumes.
From 2028 only electric cars
The carmaker announced in July last year that it would only offer electric cars in Europe from 2028. With the offer, the traditional brand also wanted to go to the car market in China. Sales of electric cars are currently growing strongly in the People’s Republic.
According to the “Handelsblatt” report, Carlos Tavares, head of the parent company Stellantis, pulled the ripcord due to political concerns. Opel is one of 14 brands under the Stellantis umbrella. Stellantis also owns the brands Fiat, Peugeot and Alfa Romeo.
geopolitical tensions
The background to the decision is growing geopolitical tensions between the communist leadership in China on the one hand and the USA and the European Union on the other.
Nationalist tendencies in China, the draconian zero-Covid policy and the escalation of the conflict over independence from Taiwan made it difficult for Opel to enter the world’s largest sales region, the newspaper reported, citing business circles. In addition, Opel currently lacks attractive models that differ noticeably from those of the competition in order to be really successful in China.
Important sales market
China is the most important market for German car manufacturers. Almost 40 percent of all Volkswagen cars are sold in China, BMW and Mercedes sell a good one in three cars there. At the same time, the pressure on the automotive groups to diversify their sales markets is growing – also due to Beijing’s increasingly protectionist attitude.
Federal Economics Minister Robert Habeck (Greens) said this week that Germany had to look around for new trading partners and regions. If the Chinese market were to close, Germany would have extreme sales problems. The naivety towards China is over, according to Habeck.
Figures presented this week by the research organization Rhodium Group, on the other hand, point in a different direction. A third of all European investments in the period from 2018 to 2021 were made by the three German car manufacturers Volkswagen, BMW, Daimler and the chemical giant BASF.