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FCA, GAC Prepare to Make, Sell Chinese Jeeps

by David Zatz on

Some time ago, GAC of China and Fiat Chrysler (FCA) formed a joint venture company, GAC Fiat Chrysler Automobiles, to build and sell Jeeps and other FCA products in China.

Companies from outside of China cannot operate within the country directly, but must operate through a local firm.

china

The joint product venture has now been joined by a joint-venture sales company, the prosaically named GAC Fiat Chrysler Automobiles Sales Co., Ltd. The CEO of the company will be Daphne Zheng, and the Executive Vice President will be Chen Daohong. Production should start in 2016, with eight vehicles planned for 2018, and a goal of 3 million sales for 2020.

Mike Manley, CEO of Jeep worldwide, said that Jeep sales in China grew by 50% in 2014 and is now the largest Jeep market outside the US.

Local production is needed because China levies heavy tariffs on imported cars and parts.

Existing dealers will have an opportunity, based upon “excellent performance,” to join the new sales network, and additional dealers are being sought.

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