Chrysler will resume production in China

Article by Christian Andrei, on August 29, 2010

At the 2010 International Automotive Exhibition on April 23, Chrysler Group's plans to return to the mainstream segment of the China auto market were disclosed. Chrysler's announcement to restart its production in China comes after Fiat Auto Group had gone about re-planning its vehicle business.

Within the next five years, the Chrysler Jeep and other products will go into mass production in the joint venture with Fiat-Guangzhou Auto in Changsha, the capital of Hunan province in south central China.

This also represents the first act that Chrysler did upon officially resuming production in China after it terminated its joint venture with Nanjing Auto in 2008.

When the market in China grew so much as to become Chrysler's second largest, it became unable to cope with the progress. Fiat Group CEO Malchow had said that the company will be reducing the auto assets in the future.

This included the Chrysler brand. So far, a grand five-year-plan has been created.

Malchow said China is will become one of Fiat Group's key markets. He also said that the joint venture with Fiat-Guangzhou Auto, which is currently being built in Changsha, will initially be producing 330,000 units.

The Chrysler Jeep SUV will also go into mass production in this facility. The joint venture between Fiat and Guangzhou Auto was established in 2009 in Changsha, with a total investment of 5 billion yuan ($732 million).

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