‘The American dream has faded': how Jeep reached the end of the road in China
The 40-something recalled her then-boyfriend giving her an unforgettable gift in the early 2010s: an imported Jeep Grand Cherokee costing more than 400,000 yuan (US$55,700).
At the time, Yu was an up-and-coming media manager living in Shenzhen, and the luxurious SUV seemed to symbolise the 'American dream' of freedom and prosperity that her generation aspired to.
But that now feels like another age. The US brand has since fallen badly behind the times in China, leading to plunging sales, spiralling debts and a historic bankruptcy that will send shivers across the global auto industry.
On July 8, Stellantis and Guangzhou Automobile Group (GAC) announced their Chinese joint venture GAC Fiat Chrysler Automobiles had officially declared bankruptcy – a first for a Sino-foreign joint venture in China's car market.
Stellantis is a giant multinational that owns brands including Peugeot, Fiat, Chrysler and Maserati. But in China it was long synonymous with Jeep – an iconic brand whose history in the country dates back to 1949, when Mao Zedong was pictured saluting Chinese troops from a US Army Willys Jeep.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
7 minutes ago
- South China Morning Post
Trump's tariffs have a silver lining as nations move to free up their economies
Most people hate and ridicule Donald Trump 's universal tariffs . But if there is a silver lining, it's that they expose the hypocrisy and self-defeating internal trade barriers that countries or trading blocs have built up over a long time, resulting in a huge drag on their own economies. That loss in potential earnings could equal or even exceed the tariffs Trump has imposed on them. Advertisement This has been the case, for example, in Canada China and the European Union . The tariff crisis has brought significant movement in removing barriers to commerce in Canada and China. As for the EU, it's harder to say. Mario Draghi's report on EU competitiveness made a big splash when it was released last September. It makes valuable suggestions on breaking down trade barriers – including differences in standards and regulations, and recognition of accredited qualifications – between member states. But in the intervening months, Brussels seems to have moved on to 'harmonising' the economies of its member states on a common war footing, based on unrealistically high defence spending of 5 per cent of GDP. Nato and the war economy may be taking precedence over commerce and trade. 09:42 Trump promises to bring US manufacturing back from China, but will his tariffs work? Trump promises to bring US manufacturing back from China, but will his tariffs work? China's 'unified domestic market' In the mid-2010s, Maanshan was a fast-growing prefecture-level city in Anhui province, in central China. According to a World Bank report, private firms wanting to bid for mining rights there had to obtain approval from seven different local departments. Only local firms were successful, perhaps because officials favoured those with local connections, or because they were unfamiliar with outside companies.
South China Morning Post
an hour ago
- South China Morning Post
Ishiba's last stand? Japan's LDP in turmoil as Sanseito surge erodes PM's grip on power
With his grasp on power slipping, Japan 's Prime Minister Shigeru Ishiba has vowed to remain in office despite a stinging electoral rebuke that plunged his ruling coalition into fresh turmoil. The humiliating setback, confirmed late on Sunday , has fuelled doubts about Ishiba's leadership as rivals within his Liberal Democratic Party (LDP) circle and stoked anxiety in the world's fourth-largest economy , already reeling from rising prices, mounting security threats and the disruptive effects of US President Donald Trump 's aggressive tariff regime. In a sombre appearance on public broadcaster NHK two hours after polls closed on Sunday, Ishiba 'solemnly' conceded the 'harsh result'. 'It is a difficult situation that must be taken very humbly and seriously,' he said. Pressed on he intended to continue as Japan's leader, he replied: 'That's right'. But Ishiba's leadership of the party and the country appears increasingly precarious. Signs of discontent have flared within the LDP since the vote, with former economic security minister Sanae Takaichi openly signalling her readiness to challenge the prime minister. Addressing supporters in Nara prefecture on Friday, Takaichi declared the party was 'under scrutiny' and warned it might require drastic change to resurrect its fortunes. Sanae Takaichi speaks before an LDP run-off election in September last year. The ex-economic security minister has been positioning herself as a possible successor to Ishiba. Photo: AP 'I have made up my mind in my own way,' Jiji Press quoted her as saying. 'I will once again firmly reset the party's backbone. I promise to fight for that.'
South China Morning Post
2 hours ago
- South China Morning Post
Should Hong Kong follow if London opts for 24-hour stock trading? City brokers are divided
A media report overt the weekend saying the London Stock Exchange Group (LSEG) is considering 24-hour trading has raised questions about whether Hong Kong's bourse could similarly lengthen its transaction hours to cater to a younger generation of trade-anytime investors. The Orion Derivatives Platform (ODP), developed by Hong Kong Exchanges and Clearing (HKEX) for roll-out in 2028, would give Asia's third-largest capital market the capability to 'offer near 24-hour derivatives trading, introduce new products and provide enhanced efficiency,' the HKEX said in April last year. The exchange has not disclosed any plans to change its trading hours, which currently run for 5.5 hours every weekday from 9.30am to 4.00pm, with a one-hour lunch break in between. That put Hong Kong in the middle among global markets: 4 hours in Shanghai and Shenzhen, 5 hours in Tokyo, 6.5 hours in the US and Canada, 8.5 hours in London, and 14 hours in Frankfurt. 'If HKEX expands its trading hours, it would help [boost] the market turnover and attract international investors,' said Kenny Ng Lai-yin, a strategist at Everbright Securities International. 'But there will be a lot of investments needed by the exchange and the brokerage industry, [so] it needs a balance on whether to extend the trading window to 24 hours.' The final day of floor trading on the Hong Kong stock was on October 27, 2017. Trading thereafter was done entirely digitally via scripless dealing. Photo: Edward Wong HKEX declined to comment. The LSEG was weighing its options on whether to introduce 24-hour trading to meet growing demand from small investors, the Financial Times reported on Sunday, citing unidentified sources. LSEG declined to comment when asked by the Post.
