Chinese officials may be withdrawing their support for investments made by foreign automakers, but the Fiat-Chrysler Alliance is still looking for ways to increase its presence in the country.
A new report from the Detroit News says that Fiat and Chrysler are currently in “intense negotiations” with the Guangzhou Automobile Group to produce Jeep models for the local market.
The Italian automaker has already forged a joint venture with Guangzhou for the manufacturing of a new compact sedan based on the 2013 Dodge Dart, which will most likely be introduced in China at the upcoming Beijing motor show in April.
Mike Manley, head of Fiat-Chrysler’s Asian operations, says that the growing Chinese market is very important for the group’s future, though he admits it’s not going to be easy.
“If you look at our aspirations for volumes in 2014, 2015, some of the keys to unlocking that is significant growth in China,” Manley said. “(But) it’s one of the most competitive marketplaces in the world. We are, to a large extent, late to the party.”
Ironically, as the Detroit News reports, Jeep was the first western automaker to forge a joint venture with a Chinese manufacturer to build the Cherokee in 1984. However, when the Chrysler group brought American Motors Corp. and together the rights to Jeep in 1987, it pulled it out of the Chinese market – not a smart move as it turned out.
Manley says that sealing a deal with Guangzhou for the local production of Jeeps is a top priority for the group.
“There is no doubt domestic manufacturing of Jeeps is the way to significantly grow our volumes,” he said. “Fiat have what I consider to be a very good joint venture partner in Guangzhou. They’re very well established in the market.”
The Chrysler group executive added that while other companies have expressed interest in building Jeep models in China, the firm’s goal is to seal a deal with Guangzhou.
“This partner is the right one for us. We have common interests that are very much aligned. They have a lot of respect for the Jeep brand,” said Manley.
