Chinese automotive giant Great Wall Motors (GWM) is facing a major setback in its European operations as reports emerge of the closure of its Munich headquarters in Germany. This move will result in the termination of all staff contracts, including the management team. While GWM vehicles will still be available in existing European markets, the planned expansion to other countries has been abruptly halted.
The decision to shutter its European headquarters comes on the heels of disappointing sales figures for the brand across the continent. Despite recording a commendable 316,018 units sold in overseas markets in 2023, only a meager 6,300 found buyers in Europe. The automaker’s ambitious goal of reaching 1 million sales outside of China by 2025 has been pushed back to 2030, citing the challenging market landscape.
According to sources at German media outlet Manager Magazin, GWM’s Munich offices are slated to cease operations by the end of August, resulting in the dismissal of its entire 100-strong workforce. Employees and partner companies have reportedly been notified of the impending closure. Despite the grim outlook, Great Wall Motors reaffirmed its dedication to its current European markets while acknowledging the necessity for strategic adjustments amidst market volatility.
In a strategic maneuver announced in November 2023, Great Wall Motors consolidated its Ora and Wey brands into a unified GWM entity, rebranding its product lineup accordingly. However, plans for expansion into Spain, Italy, Portugal, Belgium, Luxembourg, Netherlands, Austria, Switzerland, Denmark, Iceland, and Bulgaria within 2024 have now been shelved.
Nevertheless, GWM remains committed to honoring existing partnership agreements in key European markets such as Germany, the UK, Ireland, and Sweden. With the closure of its European offices, overall management will now be centralized at the company’s headquarters in Baoding, China.
Currently, the GWM lineup features models like the Ora 03 (formerly known as Ora Funky Cat) alongside the Wey 03 and 05 SUVs. Whether the much-anticipated European debut of the Panamera-style GMW Ora 07 sedan will proceed as scheduled in summer 2024 remains to be seen amidst these developments.