Chinese car manufacturer Great Wall plans to shut down its European headquarters in Munich by the end of August, resulting in the dismissal of all 100 employees. While this move signifies the end of the company’s expansion into other European markets, Great Wall has clarified that it does not intend to withdraw entirely from Europe.
According to sources cited by German publication Manager Magazin, Great Wall announced this decision to employees and business partners on Tuesday. The closure will include the departure of the entire top management team, including Commercial Director Steffen Cost, who previously worked at Kia.
Despite closing its Munich headquarters, Great Wall intends to maintain its presence in Europe by managing its existing markets remotely from China. However, the previously planned expansion into new European markets, including Austria and Switzerland, has been put on hold.
In Germany, Great Wall will continue its partnership with the Emil Frey Group, which will handle vehicle imports and manage the dealer network. However, communication will now be directly with the management in Baoding, China, rather than through contacts in Munich.
Great Wall’s future in Germany remains uncertain, as the company initially struggled to agree on a sales model with its German partner. Furthermore, the company’s brand strategy underwent a radical change, leading to the discontinuation of recently established model names in favor of the GWM brand.
The Emil Frey Group and other import partners now face decisions regarding their commitment to Great Wall in light of these changes. Great Wall’s European expansion has fallen short of targets, with only 6,300 new registrations reported in 2023.
