On 20 March, GAC Director of Board agreed to invest 1.8 billion CNY into GAC- FIAT for capacity increase, new product development and mating engines. According to GAC- FIATshareholdingpercentage that GAC and FIAT- Chrysler take 50:50, which means both sides will invest totally 3.6 billion CNY into GAC- FIAT.
“It decides to operate JEEP under GAC- FIAT framework very early. According to capital increase volume and GAC- FIAT market performance, the 3.6 billion CNY definably invest in JEEP China made project.”Ananalyst who watching automobile industry long time so expressed. GAC- FIAT production capacity now has 140 thousand. However, sales of China made and imported cars no more than 50 thousand. FIAT brand capacity development is not that urgent.
It has confirmed that JEEP China made project will sign contract soon. However, GAC has not confirmed the message yet. Insider says “JEEP project is working hard forwards. Break news comes not any time.”
No matter from inner operation or outside competition, GAC is thirsty for JEEP brand China made project. GAC has met many force majeure or resistance during its development. Profitability has stepped down time by time. The last 5 years is the most downturn period for GAC. Its net profit of year 2012 is only 1 of 6 of its peak time.
JEEP may weight GAC situation. JEEP product price is higher, and relative profit of single car is higher. In China, JEEP has its widely accepted reputation, and SUV segment now is hot sales in China. After JEEP China made, it may be the most outstand brand of GAC- FIAT.
March this year, senior management of FIAT and JEEP tell media in public that JEEP China made project with GAC cooperation will sign contract very soon. “The fastest will be in March.”
On 20 March, GAC Group directors of board has eyewitness the time coming. The conference has approved
