Chrysler’s partnership with Soueast Motors may hinder its expansion in China

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As Fiat is going to become Chrysler’s controlling shareholder and GAC-Fiat will start local production soon, Chrysler’s local production plan is also put on the agenda.

A source with Chrysler China revealed that Chrysler will surely start local production, and it will make products with GAC-Fiat’s platform. But as Chrysler’s partnership with Soueast Motors has not ended, the schedule for the local production of Chrysler has not been determined.

Another source with Chrysler disclosed that they are in talks with Soueast Motors on dissolving their partnership. If the partnership is dissolved, Chrysler can import Dodge Grand Caravan to China and plan local production.

Soueast Motors started technological partnership with Chrysler from 2005. Chrysler authorized Soueast Motors to make Chrysler Dodge Grand Voyager locally. Within the term of their partnership, Chrysler is not allowed to import Dodge Grand Voyager. A Chrysler dealer revealed that the production of the Grand Voyager has been halted, and the locally-made Caravan is still on sale.

A Chrysler source told that if Soueast does not ask too much, they will dissolve the partnership in advance, or they will wait till the term ends.