FCA and BAIC could create a JV in China
- The Italian carmaker Fiat was one of the first carmakers to operate in China, from the late 90s.
The JV, established with the Chinese carmaker Nanjing, manufactured and sold locally the Fiat Palio, Siena, Doblo, Linea and Perla (30 000 to 35 000 units per year). The agreement between Fiat and Nanjing however ceased in 2006, as Fiat was not satisfied with the business results of the joint venture.
The JV, established with the Chinese carmaker Nanjing, manufactured and sold locally the Fiat Palio, Siena, Doblo, Linea and Perla (30 000 to 35 000 units per year). The agreement between Fiat and Nanjing however ceased in 2006, as Fiat was not satisfied with the business results of the joint venture.
- Fiat was no longer represented in China, while Nanjing took over production and sales of models of the MG brand,
a former branch of Rover Group. Nanjing was then integrated into the SAIC group that produced and then sold models of the Roewe brand, also a former branch of Rover Group. The two former branches of Rover Group were thus united in one entity.
a former branch of Rover Group. Nanjing was then integrated into the SAIC group that produced and then sold models of the Roewe brand, also a former branch of Rover Group. The two former branches of Rover Group were thus united in one entity.
- In 2012, a year after taking over the Chrysler Group, Fiat decided to establish in China a second time, this time with another Chinese partner: GAC (Guangzhou Automobile Corporation). The JV manufactured and sold the Fiat Viaggio and Ottimo as well as Cherokee and Jeep Renegade. Trade performance of the new joint venture, however, remained unsatisfactory. Four years after the creation of the JV, the FCA group lagged at the 24th place of the carmakers in the Chinese market (88,000 sales over 8 months 2016, 0 6% of the market).
- Consequently the FCA group got is in talks with BAIC with the objective to establish a new JV. BAIC has indeed more assets than GAC. With this new JV, FCA hopes to triple its sales in the Chinese market.
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