Cooperate with Guangzhou Automobile to produce JEEP guides Chrysler settled in Changsha

Times Weekly was exclusively informed that GAC, which has established a joint venture with Fiat, has reached an agreement with Chrysler. Both parties will cooperate in the production of Chase's most famous brand Jeep models in Changsha, Hunan Province. The first model of the partnership is the Jeep guide.

After ending an unhappy "marriage" for more than 20 years, Chrysler has begun to try new emotions in China.

As Fiat acquired Chrysler, Guangzhou Automobile acquired Changfeng, Fiat and Guangzhou Automobile set up a joint venture in Changsha, the series of dazzling reorganization has settled, Chrysler has finally taken the first step to return to the Chinese market.

Chrysler makes a comeback

On August 14th, Time Weekly was exclusively informed that GAC and Chrysler, which had already established a joint venture with Fiat, reached an agreement to cooperate. The two parties will jointly produce the Cheepers' most famous brand Jeep in Changsha, Hunan. "The first model that the two parties cooperated with was the Jeep guide," said one source who declined to be named.

This argument confirms many speculations in the industry. Chrysler, which broke up with BAIC in early 2009, has been seeking to find new partners in the Chinese market. However, after Chrysler was acquired by Fiat, an Italian car manufacturer, this speculation has little doubt. Because after Fiat and GAC set up equity joint ventures in Hunan, the two sides have almost no obstacles in their cooperation.

In June 2009, the bankruptcy reorganization of Chrysler and Fiat reached an agreement. According to the agreement, Fiat initially owns a 20% stake in New Chrysler, and Fiat will have a 35% stake in New Chrysler after achieving the contractual goals. In addition, on the premise of paying off public debt, Fiat can further increase its shareholding ratio to achieve absolute control. At the same time, Fiat also signed a cooperation agreement with GAC Group and the two parties will establish a joint venture in Changsha, Hunan.

"The current cooperation plan is a top secret, and even Chrysler China does not know." The source told the Times Weekly reporter.

Chrysler, which was on the verge of bankruptcy twice in the late 1970s and the 1990s, formed a joint venture with BAIC in 1983 and is one of the earliest multinational companies to enter China.

However, in the Chinese market, Chrysler's development did not go smoothly. In the Chinese market for nearly 20 years, the main domestically produced model was Jeep 212. After being sold by Daimler to the American private equity fund Cerberus in August 2007, it became the outcast of Beiqi.

However, as one of the top three automobile companies in the United States, Chrysler has an important position in the global automotive industry. This is also an important reason why the US government decided to rescue Chrysler and conditionally sell it to Fiat. Especially its most famous Jeep brand, it is synonymous with off-road vehicles. During the "World War II" period, the United States famous general George Patton was riding Jeep car to defeat the mighty German fascist Marshal Rommel, since then Jeep entered the "Encyclopedia Britannica", as a proprietary vocabulary, to become a representative of models.

Lost China

According to official data, Beijing Jeep, which is a joint venture between Chrysler and Beijing Automotive, reached its highest level of sales of nearly 26,000 vehicles in 1995. Since then, sales have fallen almost year by year. In 2006, it sold only 6,838 vehicles, and its market share was 0.2%.

On New Year's Day in 2009, 12 days after Chrysler received a $4 billion U.S. government government rescue package, Asia Pacific CEO Murphy was officially dismissed, and it was less than 15 months before he took up the position with a high profile.

Since it was confirmed that it was abandoned by Daimler, Ashley, who was then the CEO of Chrysler China, was transferred back to the United Kingdom in late January 2008. As the highest authority in Chrysler China, Murphy spent nearly a year. , Negotiating with a number of Chinese auto companies to seek a sustainable joint venture partner, but Murphy did not complete this mission.

In addition to realizing the production of the Chrysler 300C and the Platinum Rui with the BAIC Group in technology transfer, Chrysler has also entered into joint ventures or OEM agreements with Chery and Great Wall Motor Co., Ltd., but has nothing to do with it. At present, Chrysler in China only cooperates with Fujian Automobile Group to produce marginal models that are almost negligible - Dodge Kelly and Chrysler Grand Jr. commercial vehicles.

Before the Chinese market was defeated, Chrysler sold only 12,000 cars in China in 2007. From January to November 2008, the Chrysler 300C sold only 3,480 units, and its business in China stagnated. Although Beijing Benz once had the technical cooperation license to produce the Chrysler 300C and the Platinum Rui, but without being optimistic about the market, Beiqi had to give up production of the Chrysler 300C and the Platinum Rui.

However, as an entry-level model among the four imported models of the Jeep brand domestic market, the guideline is Chrysler’s current best-selling model in the Chinese market and has been in short supply this year. Not only did it lower the price threshold for the Jeep models, it even entered the high-end model range of the Dongfeng Honda CR-V and FAW Toyota RAV4. However, due to imported cars, sales are still very limited compared to domestic SUV models such as CR-V, RAV4 and Highlander.

In fact, at the end of 2006, it was reported that the Jeep guides were about to be localized. However, with the formal dissolution of Daimler and Chrysler in August 2007, the cooperation between Chrysler and Beijing Benz has transformed into a form of technical cooperation. This plan has also followed suit.

Strong alliance with GAC

However, compared with BAIC, GAC is undoubtedly a stronger partner. In 2008, Guangzhou Automobile Industry Group achieved sales revenue of 112.512 billion yuan, an increase of 3.45% over the same period of last year. In comparison with 18 key automakers across the country, the composite index of industrial economic efficiency ranks first and comprehensive competitiveness ranks first.

According to the “12th Five-Year Plan” of GAC Industrial Group, which was compiled in April 2009, GAC wants to become one of the largest automakers in China with SAIC, FAW, and Dongfeng during the “12th Five-Year Plan” period. Its minimum goal is to achieve annual sales of 2 million cars during the “Twelfth Five-Year Plan” period. However, in 2008, Guangzhou Automobile Industry Group achieved only 530,000 vehicles for production and sales, and there is a huge gap between 2 million vehicles.

It is reported that in order to become the first camp of the Chinese auto industry as soon as possible, in addition to the opening of Guangzhou Auto's second plant, the automaker’s own-brand passenger car base under GAC has been built in Hualong Town, Panyu District, Guangzhou City, and its first self-owned brand model It will also go offline in 2010; the integration work after the acquisition of Hunan Changfeng Automobile is also well underway; the GAC Fiat project with Changsha-based Guangqi Changfeng Motor will also launch its first model Ling Ya in 2011. In addition, Southeast Automotive and Brilliance Automotive have also become potential reorganization targets of GAC Group.

In this case, cooperation with Chrysler is also an ideal choice. According to industry insiders, if you can introduce models with production and sales links, Chrysler will be able to contribute at least 100,000 vehicles per year to Guangzhou Automobile. This figure is considerable. Moreover, with the development of China's economy, the SUV market will continue to expand.

However, in an interview with the Times Weekly reporter, Tang Kui, director of Guangzhou Automobile Industry Group, Jia Junjun, director of Chinese corporate communications at Chrysler, and Yan Jianming, head of GAC Fiat project, said that they did not understand this plan.