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
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