China’s Guangzhou Auto mulls an US entering image

The Guangzhou auto group plans to be the first Chinese carmaker to enter the US market and is looking to Fiat-Chrysler for help.

There are not many perspectives for the Chinese carmakers to enter into the United States, as both their local and emerging markets are way suitable regions in terms of selling volumes. However, Guangzhou Automobile Group is determined to make this step through its GAC Motor unit, a move that would mark the first Chinese brand to be sold in the US. The company already made its intentions into this direction clear last year, for now to seek support for its plan from Fiat-Chrysler, a top executive told Reuters. The automakers have a partnership, which allows the Italian-American maker to build cars in China. “Chrysler’s development in China required our support. Now for GAC Motor’s development in the US we also hope for Chrysler’s support and help,” said GAC Motor General Manager Wu Song on the sidelines of the Beijing auto show.

GAC Motor has started to put its strategy in motion and it is now looking for potential dealership partners in the United States, while it is doing tests in China on two of its models there are supposedly complying with the American standards and regulations. Even if the Chinese market are starting to show its limits, Song said the brand would still continue to focus on the local demand. “Sudden price cuts have messed up the whole (Chinese) market, so at this time we have to invest a lot of energy determining the brand’s next strategic steps to protect our position,” he added. “We must not be distracted.”

Via Reuters