While the U.S. and Europe seek to reduce their reliance on the economic might of China, Mercedes-Benz’s CEO says severing links with the market would be “unthinkable.”
Quoted in a recent edition of German popular tabloid Das Bild, Ola Kaellenius says, “The major players in the global economy, Europe, the U.S. and China, are so closely intertwined that decoupling from China makes no sense.”
The sentiment appears to fly in the face of the European push to establish its own battery-manufacturing gigafactories and semiconductor plants to keep a handle on the supply chains so endangered during China’s comprehensive lockdowns during the height of the pandemic.
Mercedes-Benz counts China’s Beijing Automotive Group and Geely Chairman Li Shufu as its two top shareholders. China accounted for 18% of revenues and 37% of car sales at Mercedes-Benz in 2022 and Kaellenius predicts more to come.
He adds: “Our sales figures in China are increasing and I am quite optimistic that we will also grow this year. During the corona years, the wealthier Chinese in particular made extraordinary savings. This (customer) purchasing power should benefit us.”
