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Fiat-Chrysler alliance will set up new sales company in China

 

Gasgoo.com ĘC On July 1st, a new sales company will be established by GAC group and Fiat-Chrysler Alliance in Shanghai, where sales, marketing, product and service business of Jeep, Fiat and Chrysler cars will be operated. The general superintendent will Mr. Zheng, who was the president and general manager of Chrysler China. With Mr. Zheng' s leadership, the Jeep brand increased by 107% in 2012 on year-on-year growth and in 2013, the sales volume of Chrysler in China was 89,000, increasing by 78% on year-on-year growth, which was the biggest growth among imported cars. The excellent performance is the reason why Mr. Zheng is chosen.

At the same time, GAC group will assign an executive vice general manager to the sales company. On Apr. 1st, all sales people of GAC Fiat Changsha will move to Shanghai, which means the sales business of GAC Fiat Changsha will be operated in new sales company. This change is good for GAC group and Fiat-Chrysler alliance to manage Fiat Jeep brand and to develop sales channels in China.

The GAC Fiat headquarter in Changsha will be manufacturing company independently. After that, the production and sales will be separated as the same as the localization of Infiniti. This mode is used by many auto enterprises including Shanghai Volkswagen, Benz and Volvo. The reason why Fiat uses this mode is the low growth in China after joint venture company established.

This change also is a part of the integration of Fiat-Chrysler. Three and a half years earlier, Fiat purchased the share of Chrysler from American and Canadian governments by 0.5 billion and 0.125 billion, which increased the ratio from 46% to 53.5%, owning controlling interest. There is little time for Fiat-Chrysler alliance and the biggest test is how to cooperate to compete in the market.

 
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