Chrysler game over in China?
Chrysler will not be making anymore 300C sedans, or Sebrings in China from 2009 onwards, since Chrysler self ejected from its joint venture with Daimler in Beijing early last year and talks with Chery seem to have halted, Chrysler has found itself without a factory. Once current inventories in warehouses have sold out, Chrysler will not produce anymore vehicles in China, other than the single Dodge Caravan it makes with SouEast.
An auto dealer in Hebei, Tangshan Pangda, has purchases the remaining 1,411 Beijing made Chrysler 300C, and 1,863 Crhysler Sebrings. Sales of the 300C have never been considered great, with only 3480 cars being sold from Jan to Nov in 2008, and also only 5590 Sebrings were sold in the second half of 2008.
The JV and brand licensing between Chrysler and Beijing does not expire until 2012, which gives Chrylser ample time to import several models into China. It is widely believed that the Jeep Rubicon will see China sales, and also the Dodge Journey, but these will be imported into China until another solution is found.
Tweet This
Share on Facebook
Digg This
Save to delicious
Stumble it
RSS Feed
Sad about the 300s, but the Sebring is a dog and wont be missed.
The 300 is very nice, but it is incredibly over priced compared to other brands, a shame they didnt bring the tourer version.
You will see Chrysler in China again.
http://www.nationalpost.com/news/story.html?id=1173917
Chrysler is in negotiation with three Chinese automakers, Chery and Ghangzou in particular, for the rights and tooling for PT Cruiser @ $100 million.
There is a separate bid on all of Chrysler by SAIC(This is why SAIC let Ssangyong go bankrupt, to raise cash for Chrysler).
Last September just-auto.com said, “the board of directors of Beijing Benz-Daimler Chrysler Automobile Co Ltd (BBDC), a joint venture between Beijing Automotive Industry Holdings Corp and the former DaimlerChrysler AG, is studying a plan to pay Chrysler USD 1 billion to withdraw from the joint venture.” It’s a bit hard to believe that lofty figure, and I doubt if it’ll ever materialize.
Anyway it looks like there is no love lost between Chrysler and BAIC. And that’s unusual because the Chinese are known for their long-enduring relationships. In 1987 Chrysler took over the JV, built on blood, sweat and tears, from the original partner AMC. After 20 years of struggle, in 2003 that historic “first foreign JV” contract expired. But it’s said that the above-mentioned BBDC renewed the JV contract for another 30 years, until 2033. So will the Daimler side go the distance with those hard-nosed Beijingers? Hard to say. In any event it seems Chrysler is left out in the cold, for now at least. Maybe it and Fiat can console each other.
One might say that China’s first foreign JV was making SUVs before SUVs were cool, in the eyes of Chinese consumers. Timing is everything.