Chinese car maker Great Wall Motor (GWM), known in the UK for its Ora EV brand, will close its European headquarters as part of a restructuring of its operations.
The closure of the site in Munich, which has been confirmed for 31 August, will result in 100 job losses.
GWM's European operations will henceforth be controlled from its home country of China.
Despite the change, GWM cars – within the Wey, Ora and Poer brands – will still be sold in Europe, a spokesperson for the Chinese firm told Automotive News Europe.
The restructuring is understood to not affect GWM's design studios in Munich and Turin, which were both recently opened to feed in European design influences.
GWM has blamed tough EV market conditions, especially in Germany, discounts offered by rival brands and the "very concrete threat of punitive taxes" on imported Chinese cars – something currently being considered by EU legislators.
"That creates a very high uncertainty for a company like ours with an EV portfolio," the spokesperson told ANE.
GWM's UK operations – which currently consists solely of the Ora 03 hatchback and is handled by distributor IML – are unaffected, GWM told Autocar.
“This change does not impact the UK market and its distribution partner, IML, will continue to operate as usual,” it said.
“GMW Ora UK remains committed to its customers and business partners and will continue to invest in the brand's future growth and development.”
The firm added that it had “already established a strong foothold” within the market, which includes 1500 sales and 30 dealer partners.
The Ora 07 saloon, already on sale in China as the Ora Lightning Cat, will also be launched here later this year.
IML boss William Brown said: “IML will continue to play a vital role in helping GWM build a strong brand presence in the UK, and I want to make it clear to customers and business partners alike that this operational change in Europe has no bearing on our ambitions for the brand in the UK.”
Add your comment