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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Guangzhou Automobile Group Company Ltd (PK) | USOTC:GNZUF | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.4022 | 0.3362 | 0.4516 | 0.00 | 21:00:37 |
By Gilles Castonguay
VENICE--Chrysler Group LLC might look for a partner in China different from the one used by Italian parent Fiat SpA (F.MI, FIATY) to help it develop its Jeep brand in the country, the U.S. auto maker's chief executive said Saturday.
Chrysler, which is majority owned by Fiat, is struggling to re-establish production in China.
It stopped making Jeep vehicles in 2006 before Chrysler was split from Daimler AG (DAI.XE, DDAIY). The German auto maker kept the partnership and plant in Beijing that had assembled Jeeps. As a result, Jeep has fallen behind in China as other makers of sport utility vehicles have benefited from the strong demand for this kind of vehicle.
Jeep sells three models in China--the Wrangler, Grand Cherokee and Compass. Since they are shipped from the U.S. and subject to an import tariff, it is difficult for Chrysler to sell them in large volumes. It also has few dealers.
In 2012, just 46,000 Jeep vehicles were sold in China--a sliver of a market of around 19 million cars and light trucks. All of those Jeeps were imported from the U.S., with their prices inflated by import duties.
Chrysler has looked at using Fiat's partner, Guangzhou Automobile Group Co. (GNZUF, 2238.HK), but Sergio Marchionne, the chief executive of both Chrysler and Fiat, said the company could look for another one.
"We don't necessarily have to choose him (partner) to go ahead with Jeep," he told reporters on the margins of an event. "We have the possibility to use two (partners)."
Write to Gilles Castonguay at gilles.castonguay@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
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