Chrysler Plans Cooperation in China.doc

1、1Chrysler Plans Cooperation in ChinaFiat-Chrysler is reported to be talking with Guangzhou Automobile Group(hereafter Guangzhou Auto for short) about founding a joint venture to introduce the production line of Jeep into China. Fiat has already been a partner for Guangzhou Auto and will localize the

2、 production of a new kind of compact auto in China. This new kind of auto is built on the same platform with the 2013 version of Dodge Dart sedan. Mike Manley, director of Fiat-Chrysler Asian Business, said that this unnamed compact car would be launched in the Beijing Auto Fair in April. Manley sai

3、d that China would provide great opportunities for Fiat-Chrysler, but he added that the alliance should make more efforts to realize the sales goal which was established in 2009. Manley said: “In order to finish our grand sales goal by 2014 and 2015, the Chinese market will play an important role. C

4、hina is also one of the most competitive markets in the world and we are actually late in this market.” 2Actually, Jeep was the first western auto brand that got into the Chinese market. In 1984, American Motors Corp, current owner of Jeep, founded the first auto-making joint venture with a Chinese

5、local auto company to produce Cherokee. However, after Chrysler acquired American Motors Corp in 1987, this project was shut down. In spite of that, the Jeep brand was still available in China. According to the statistical data, the Jeep brand saw the sales increase from 12364 units in 2010 to 22294

6、 units in 2011. But these cars were made in other countries. The tariffs and transportation cost upheaved the price, which is a negative factor for the price-sensitive Chinese market. It is known that Guangzhou Auto has a lot of experiences of working with foreign automakers. It has already set up s

7、everal join ventures with Japan-based Honda and France-based Peugeot. Fiat built partnership with Guangzhou Auto in 2009 and they planned to produce the new type of auto in a new plant in Changsha, Hunan. Sergio Marchionne, CEO of Fiat, once said that the Auburn Hills, Michigan-headquartered Chrysle

8、r should retain the controlling right of Jeep no matter what agreement the two parties. Marchionne said: “We should be protective of brands 3and I hope that Chrysler could control this brand. Losing the brand is not what I want to see. We are still talking on feasible methods.” But auto research ins

9、titution IHS vice president Michael Robinet pointed that Fiat-Chrysler and its Chinese partner had to face another problem in China ?C the slowdown of the development of the Chinese automotive market. The government is more careful about choosing the brands and types of autos that will be introduced

10、 in the market. Robinet said: “Presently China paid close attention to the increasing production capacity of the auto market. Therefore it is harder and harder to establish an auto-making joint venture in China. The Chinese government does not simply hope to increase the production capacity. Their a

11、ctions are more based on the strategic considerations.” Fiat is also seeking an opportunity of reentering the Chinese market. In 1999, the Italian company founded a joint venture with Nanjing Automobile Corp, which broke down in 2007. Fiat is now planning to introduce Fiat 500 and Bravo into China.

12、Only a few days before the Chinese spring festival, it had successfully introduced the full-sized crossover SUV Freemont, which is based on the same production technology of 4Dodge Journey, into China. Mike Manley believes that Fiat can have great achievements in China because the Chinese consumers have already had a crush for the Italian-style autos. “The Chinese consumers are fond of European auto brand. Our real task is to expand the influence of Italian-style autos developed by Fiat in China.”