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FCA China to grow?

by David Zatz on

Even as the Chinese government considers, or pretends to consider, letting foreign companies own a majority share in local businesses, FCA is reportedly talking with the huge BAIC Group about a joint venture.

BAIC, which was a potential partner with Chrysler Group, would be a second partner with FCA; Guangzhou Automobile Group (GAC) currently makes Jeep Cherokees and Renegades along with Fiats.  China allows foreign companies to make two joint ventures.

Jeep Renegade in China

Bloomberg reported on the rumors of an FCA expansion, which would handle FCA brands other than Jeep and Fiat. Some have noted that the Chrysler Pacifica would be ideal for China, positioned as Buick is, and would help amortize engineering costs over a much larger production base.

FCA’s sales in China remain small; in the first seven months of 2016, they totaled under 76,000 vehicles. That’s still around four times more than in the first seven months of 2015.

Unlike General Motors and Volvo, FCA sells all vehicles it makes in China, in China.

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