Rumor that BAIC Establishes a Joint-Venture Company with FCA Faces Denial from Cai Jianjun

Shanghai, August 16, Gasgoo - Media reported that FCA would establish a joint-venture company with BAIC, and that BAIC’s Vice President Cai Jianjun would take charge of the new company. It’s also said that the new company would produce Dodge or Chrysler. But Cai Jianjun denied the fact during interview for confirmation.

In as early as in September, 2016, media revealed that FCA would established a joint-venture company with BAIC with the project code of “BFC”. It’s said that Yu Liguo, Minister of BAIC Group Strategic Planning Department, would take in charge of the project. But BAIC Group denied the news afterwards.

Public data shows that Fiat invested USD 4.35b in January, 2014, to purchase 100% shares of Chrysler. Chrysler announced to change its name as FCA in the same year. Currently, FCA established a joint-venture company with GAC on July 16th, 2015.

According to public information, BAIC cooperated with Chrysler in 1983 by establishing Beijing Jeep Automotive Company. Daimler Group joined in the joint-venture company afterwards, and Beijing Jeep turned into BAIC Daimler Chrysler. But the brand vanished in the process of competition from relevant brands.

It’s reported from foreign media that USEPA accused FCA of using undeclared software to cover the excessive exhaust emissions on January 12th, involving 104,000 units’ diesel vehicles under the brand. FCA may face a huge fine of USD 4.6b if found liable.