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FCA setting up another CHINA jv...for Chrysler+Dodge, not just JEEP

Discussion in 'Fiat Global News' started by prabhjot, Sep 13, 2016.

  1. prabhjot

    prabhjot Esperto

    delhi ncr

    This report is sourced from the Chinese press. Where it is being reported that FCA will by the end of the year set up a jv factory and sales organisation for the Chrysler brand (C200 sedan, C300 sedan including the next-gen, the Pacifica minivan, with an emphasis on hybrids, for which the pacifica is fca's flagship model.)

    In 2017 imported sales will begin and by the end of the year/2018: the Chrysler (and Dodge? Possibly Ram lifestyle pickups?) will be locally manufactured there.

    The JV is reportedly with BAIC, Chrysler Corp's old China partner, back when Jeep was being locally manufacturd in pre-reform 'Communist/Maoist' China. BAIC still has its own-brand Jeep-clones, sort of the equivalent of Mahindra. However, the Jeep brand is dedicated now to the jv plants with GAC, since the BAIC jeep plant was (wrongfully?) grabbed by Mercedes when the DaimlerChrysler merger unravelled and now sees the manufacture of Merc models in China, with baic as a partner.

    Interestingly: BAIC is very big, the biggest in China, as far as ev-s and hybrids go, China being the country that is most heavily promoting, incentivizing and enabling the large adoption of hybrids and ev-s.

    The rumoured Magneti Marelli jv with Samsung also concerns Samsung's major, recent, push in ev-technology, Samsung having just invested hugely in a very large battery-manufacturing JV in China.

    It appears that the Chrysler brand will, in the future, (a) not be Usa+Canada only, but will like Buick(GM) seek a big presence in China, mainly on the basis of (b) hybrids and ev tech, starting with the splendid Pacifica minivan. Chrysler will be fca's phev-specialist brand, and CAFE-standards-compliance brand-in-the-usa, once battery etc prices fall enough, as everyone says they will, by say 2020.

    If enough sales volumes are achieved in China for localized Chryslers: FCA will achieve the economies of scale for the hitherto usa-only-constrained models, with BAIC bearing at least half the capital costs and the risk, including most likely the export back-to-the-usa of Chryslers (just as GM does in a big way with Buick models.) Chrysler, whose C200 is being withdrawn from the usa market, as it is not profitable-enough and is hogging precious capacity in N America, achieves another life, this time China-centered and as-a-phev semi-luxe large/people-mover brand. Some FCA followers in europe speculate that China-made Chryslers, present (eg., the Pacifica) and future (e.g., next-gen C300) will reappear as Lancia-s europe-wide, with Lancia being fca's hybrid-ev-plush-techy non-performance brand for europe, which is also moving away from supporting diesel engine tech and towards public support, instead, for hybrids and even full-ev-s.

    Meanwhile: given enough scale, and Chinese lower-manufacturing costs, presumably with Samsung full-participation (with or without Magneti Marelli) FCA will achieve good costing on its proprietary phev tech, being first-launched soon on the Pacifica minivan, to be followed in 2018 by deployment in Maserati-s, and so on, upto presumably Fiat citycars eventually (depends on costing/taxes etc.)

    It is very amply clear that the FIAT brand is near-irrelevant going forward for FCA in China, or it would seen most-likely, in India. FCA will focus entirely on Jeep, Alfa romeo, Maserati and Chrysler(China), and NOT try to compete with the dominant, entrenched Japanese and Korean firms in Asia-Pacific via more mass-market FIATs.

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