Chrysler to relocate Asia HQ from Beijing to Shanghai

Shanghai, July 10 (Gasgoo.com) Philip Murtaugh, CEO for Chrysler Asia who has aimed to change the carmaker's situation in China, now is beginning to do a long-considered surgery on the company's Chinese operations. This surgery includes reshuffling the executive team and relocating Chrysler Asia's headquarters from Beijing to Shanghai, reported Beijing Times today.

Chrysler Group has named a Korean the general manager of the auto sales company of Chrysler China, and Daphne Zheng, from GM, is named the Chrysler Asia's director of marketing and communications. With the setting up of its Asian business framework, Chrysler will put its Chinese operations under the control of Chrysler Asia.

In the near future, the major divisions of Chrysler China will moved from their current Beijing headquarters to Shanghai, only with a Chrsyler Beijing office left behind in the Chinese capital.

Chrysler named Philip Murtaugh as CEO of its Asia operations in early September 2007. At the 2008 Detroit Auto Show in January, he said his first mission was to change Chrsyler's situation in China. In the first half of this year, sales of Chrsyler vehicles rose 52% in Asia, 134% in China. But the sales network of Dodge had not performed so well as expected and was integrated with network of the Jeep brand.

Over the past 10 months, Philip Murtaugh has been busy with discussions about the possible Chrysler-Chery partnership, and has contacted other Chinese carmakers such as Great Wall Motor and Changan Auto.

Chrysler said earlier this month that it has signed a memorandum of understanding with China's Great Wall Motor to assess the feasibility of developing a long-term, strategic relationship, including leveraging each other's distribution networks and component and technology capabilities. Detailed plans of their cooperation are expected to come out soon.