China’s BAIC to Establish New JV with Fiat Chrysler

Posted on 9/17/2016 9:42:04 AM

Reportedly, BAIC, one of leading automakers in China, may cooperate with Fiat Chrysler to build a new Joint Venture, which is expectedly to be confirmed by December, 2016.

What the new JV may launch remains unknown. But some believe that there may be made-in-China Chrysler 300C and modes of Dodge brand. And, a team for strategy and planning, named BFC, has been established on 1 June.

BAIC may hold shares of 50% while Fiat Chrysler may hold the other 50%. Plants of the new JV may be those built in Jiangsu Province. Expectedly, there may be exported modes to be sold in the JV by the second quarter in 2017.

During the first phase, there may be modes of SUV and MPV of 150,000 units to be produced in plants of the JV. And these products may target at middle- and high-end markets. During the second phase, there may be passenger vehicles of middle- and high-end, green vehicles, and important accessories to be produced in these plants. Production capacity may be more than 300,000 units based on planning, which can make annual revenue of 50 billion RMB.

Sales channels of products launched by the new JV may be different from those of the other subsidiaries of BAIC. There may be new sales channels for the products launched in the Chinese market.

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