Chrysler Seeks Fiat Synergies to Start Cars Production In China

China is the world’s largest car market: last year alone, more than 18 million vehicles were sold there, of which 13.76 million were passenger cars. Furthermore, analysts McKinsey & Company predict that it will grow tenfold between 2005 and 2030.

Do you want to know Chrysler’s share in this massive car market? A measly 31,000 in 2010 and a projection for just 40,000 in 2011. Therefore, it is only natural that the American carmaker is looking for ways to increase its share in this rapidly expanding market.

Problem is, you just don’t walk into China and start building cars: “To find a partner, negotiate, get government approval, build a plant – that’s a long time” Mike Manley, head of Chrysler’s international operations told Reuters news.

But, according to Manley, Chrysler already has a way to get rid of all that fuss and make things happen quickly: “Fiat are already through that”.

Fiat Spa, who manages Chrysler and is sharing technologies and models, has since 2009 established a joint venture with GAC, the country’s sixth biggest carmaker, to build cars in China.

"If there's an opportunity for us in the same way as we've done with Fiat in terms of technology or using their distribution, our speed to market is going to be so much quicker," Manley said, adding that if Chrysler, or rather Jeep, wants to succeed in the competitive small SUV market, it would have to build them in China.

Jeep is already planning to launch the Compass and Grand Cherokee models in China, while Chrysler is examining the possibility of importing the 200 and 300 sedans from the United States.

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