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FCA expanding in China

by David Zatz on

Jeep was a pioneer in Chinese production, with the Beijing Jeep joint venture, but during the DaimlerChrysler years, Mercedes took over the plant and Chrysler was left with no serious presence in one of the world’s largest automotive markets.

Today, Fiat Chrysler Automobiles (FCA) and Guangzhou Automobile Industry Group (GAC) announced a preliminary agreement that will expand their current joint venture, including a second plant in Guangzhou.

FCA and GAC have agreed to bring a localized Chrysler product to China, adding it to the existing Fiat cars. GAC Fiat will have access to the Fiat and Chrysler cars and trucks announced during the FCA May 2014 Investor Day, and reaffirmed its commitment to local production of three new Jeeps by the end of 2016.

By 2018, Jeep will have one of the most complete SUV portfolios in China, ranging from subcompact SUVs to full-size luxury SUVs (possibly including imports).

A joint operation will be responsible for all sales, marketing, product planning and after-sales support of Jeep, Fiat, and Chrysler vehicles, both locally made and imported.

The industrial operations in Changsha will continue to support and be responsible for both the Changsha and Guangzhou vehicle and powertrain plants.

The two companies, GAC and FCA, will start working on doubling the number of dealers by 2018.  The best-performing dealers from the two existing networks in China will be used for both the Jeep and Fiat/Chrysler network.

John Kett, General Manager of Fiat Chrysler APAC [Asia-Pacific] and head of Jeep  APAC, said that the plan would allow for an expansion of sales in China to 760,000 by 2018, as per the current investor plan.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304

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