China: FCA pushes for deeper local joint venture image

Fiat Chrysler Automobiles NV, the seventh-largest automaker in the world has been working hard to push its brands in China, the world’s biggest auto market.

Now, the carmaker and local automaker Guangzhou Automobile Industry Group announced they are looking into expanding their partnership and Chinese alliance. The companies have now decided to establish a joint sales, marketing and product unit tasked to promote Jeep, Fiat and Chrysler brands locally.

Back in April, Guangzhou Automobile Group announced it had secured a long awaited accord with Fiat Chrysler Automobiles to begin the production of Jeep sports utility vehicles tailored for Chinese customers. Before the end of 2016, GAC Fiat would be able to produce three new Jeep models. The new organization that has been announced would allow GAC “to collaborate with leading auto brands from Europe and the United States, to advance our globalization process,” according to GAC Chairman Zhang Fangyou. The new joint commercial division would take care of all product planning, after-sales, marketing and sales of Jeep, Fiat and Chrysler brands.

Fiat Chrysler is far behind the main global rivals in terms of China sales, reaching just 130,000 units locally last year, while main rival automakers – such as Volkswagen and General Motors each posted sales above the 3 million mark.

Via Reuters