Stellantis is to make the new C5X Citroen in Chengdu and export it to Europe. It has attracted comment in France. Le Monde called it a "double signal of destruction". It is rationalised by Tavares as strengthening the PSA position in China. Only 3% of Stellantis sales are in the Asia Pacific. Its brands are heavily centred on Europe with 49% of sales there and 31% in North America. Only 9% are in South America and 7% in the Middle East and Africa.
The Citroen director Vincent Cobee defends the decision with lavish praise for Chinese manufacturing -"Chinese manufacturing quality is one of the best in the world". Half will be exported to Europe. If it succeeds it will be hugely profitable, a European price for a Chinese made car. Other European makers are involved with Chinese ventures but the Korean makers are finding trade there too difficult and are withdrawing. But how will the French take to their President riding in a Chinese made Citroen? And what deal needs be struck with the unions?
Citroen has suffered with falling sales. French sales were down 28% last year.
The Citroen director Vincent Cobee defends the decision with lavish praise for Chinese manufacturing -"Chinese manufacturing quality is one of the best in the world". Half will be exported to Europe. If it succeeds it will be hugely profitable, a European price for a Chinese made car. Other European makers are involved with Chinese ventures but the Korean makers are finding trade there too difficult and are withdrawing. But how will the French take to their President riding in a Chinese made Citroen? And what deal needs be struck with the unions?
Citroen has suffered with falling sales. French sales were down 28% last year.
