GAC Group Jeep project team takes their final effort of negotiation. GAC Group and Fiat- Chrysler will sign JEEP China made contract recently if there is no accident happened.
Senior manager of Jeep of Fiat- Chrysler tells media about their urgent mood that “we expect to sign contract with GAC Group this month, so we can combine to produce Jeep and release its China made localization.”GAC Group Fiat has operated for 3 years, but sales are far away from its expectation.
On 14 March, GAC Group staff told reporter “GAC Group will form its tripartite situation of Honda, Toyota and Jeep.”It has reflected ZHANG Fangyou,GAC Group president said before “JEEP China made location is in Guangzhou.”
Year 2013, during North America Auto Exhibition, ZENG Qinghong has talked with Chrysler part face to face, and both sides sign contract under GAC Group- Fiat framework for JEEP brand operation. It is the first time for both sides to sign letter of intent. It is expected to China made before 2015, and both sides agree to operate JEEP under GAC Group- Fiat framework.
Project does not go very smoothly. The first issue is about location pick up. Beside, Fiat did not take entire share of Chrysler, which makes that Fiat cannot totally control Chrysler. GAC believes that it has potential problem after JEEP China made. Shareholders will have their dispute.
GAC negotiation team hints that CEO of Fiat Sergio Marchioness want to solve the question after Fiat totally buyout Chrysler. Jan this year, Fiat has announced to buy 41.46% shares from retirement trust fund of UAW to totally merge Chrysler.
The last year is waiting year for Jeep. SUV segment in China keeps hot. There are totally 165 new SUV modes have put into market. As high as 50% of them realize salesgrowth.However, as famous SUV brand, JEEP has to face competition with high tax imported modes.
