GAC Fiat Chrysler Automobiles (GFC), the joint venture floated between Fiat Chrysler Automobiles (FCA) and Guangzhou Automobile Group (GAC), plans to come up with a wholly-owned sales firm GAC Fiat Chrysler Automobiles Sales to boost its activities in China.
The initiative also highlights the company's objective to power the Jeep brand in China, apart from supporting the sales activities of GFC.
GAC and FCA eye making the Jeep Cherokee in China by this year-end, along with localized output of two additional Jeep SUVs.
The duo will also localize a Chrysler product, expanding the current passenger car lineup for the FIAT and Chrysler brands in China.
Riding high on GFC's Guangzhou manufacturing unit, set to be on stream next year, the company will make eight vehicles in the country by 2018.
GAC general manager Zeng Qinghong said: "The formation of the GAC Fiat Chrysler Automobiles Sales Co. marks a new milestone in the development of the GAC-FCA partnership and a new extension of the depth and breadth of the relationship between the two groups. The localized production of Jeep, the No. 1 SUV brand in the world, will enable us to provide high-quality products as well as satisfied experiences and services for the Chinese consumers.
"GAC adopts a three-pronged strategy - to produce vehicles of its own brands; vehicles of the joint ventures with European and U.S. automakers; and vehicles of the joint ventures with Japanese automakers. By 2020, the sales of GAC will reach three million units, and the partnership with FCA will be an important part of the strategy."
While Daphne Zheng will be at the helm by discharging the responsibilities of CEO, Chen Daohong will assume the role of its executive vice-president.
FCA GLOBAL Jeep Brand president and CEO Mike Manley said: "This move represents a major landmark in the successful progress of our brand, our business and our partnership here in China... Jeep sales in China saw an increase of nearly 50 percent in 2014, and China has now grown into the number one Jeep market outside of the United States.
