Chrysler has "business as usual" in China

Shanghai, May 4 (Gasgoo.com) After its bankruptcy filing and future alliance with the Italian automaker Fiat S.p.A. Chrysler's international subsidiaries are not part of the Chapter 11 filing and its business in China is going on as usual, xinhuanet.com reported today.

Daphne Zheng, spokeswoman for Chrysler's Asia-Pacific division, said the bankruptcy won't affect operations there. Chrysler's China business is small and will focus on imports. In the first quarter, Chrysler sold about 3,600 vehicles in the Chinese market, down about 25% from a year earlier. Imports accounted for more than half of those sales.

In late 2008, Chrysler pulled out of Daimler's joint venture with Beijing Auto. A Chrysler deal to produce cars with China's Chery Auto failed in December. Another partnership to share technology, components and distribution channels with Great Wall Motor is on hold. The U.S. automaker has no immediate plans to make cars locally for the Chinese market.

Chrysler's China sales executives said that their business is not included in the U.S. headquarters' bankruptcy filing and their sales, guarantees and after-sales services are -- and will be -- going on as usual. The imported vehicles of Chrysler, Jeep and Dodge brands will have sales, components and services available as before.

Chrysler cars made in China are nearly sold out, and imported models are offering discounts. The Beijing-built Sebring has its price cut from 215,000 yuan ($31,500) to 180,000 yuan and is not available now. The Chrysler Compass and PT Cruiser models had a discount of 10,000 yuan last weekend. Big-engine imported cars are still priced at 400,000-600,000 yuan.

As the world's second-biggest auto market, China is seen as the key to future growth for most car companies. General Motors is expected to try to hold on to its profitable Chinese operations if the automaker enters bankruptcy.