Malchow confesses that he has not achieve too further this year for JEEP. New Cherokee was planned to launched market in June, but actually delay 4 months. And it takes 10 months to work out local government relationship to approve procedure after signed framework agreement about JEEP made in China.
As the CEO of Fiat and Chrysler Group, Malchow admits that “some decisions are too naïve”. However, Malchow is proving his ability to change the situation. He makes decision with GAC about new plant location in China.
According to GAC plan before, JEEP shall be made within GAC Fiat framework, and move part of its production capacity to Guangzhou. “GAC Fiat and Guangzhou plant prepare for its SUV product already. But it does not have any message about integration between Fiat and JEEP.” Inner staff of GAC said on 4 Nov.
From the perspective of Fait Guangzhou plant production capacity, established years and operation products, JEEP China made will not be limited in Guangzhou, but Changsha will share a piece of the pie.
According to Guangdong Development and Reform Commission, GAC Fiat Guangzhou plant arranges its production capacity as follow: the first phrase has 60 thousand annual capacities, and the second phrase will enlarge production capacity to 160 thousand annually according to market demand.
Besides, Guangzhou plant product operation plan and time proves that Changsha plant is possibly to introduce JEEP early. According to China made brand usually logic, priority type should be well-sell exported cars, which insure sales fast increase and brand operation. In fact, JEEP compact SUV Compass and Patriot sell well, sales mounts to 33 thousand and takes 72% of total sales.
Meanwhile, Guangzhou plant will produce C-SUV and B-SUV passenger car, owned brands and new energy cars. According to positive message, the first operation product will be JEEP middle class SUV Cherokee. China owned brand and new energy car plan aim government policy.
Malchow plans made JEEP in China in the next half year of 2014. Guangzhou plant is unable to achieve that because of Fiat and JEEP resource sharing. But GAC Fiat Changsha plant is able to make it out. Recent years, JEEP is supplements its production line under Malchow management, and actively large and small its SUV products. New product shares resource with Fiat, massive producing JEEP small SUV shares platform with Fiat 500L.
