Sergio Finds A Dance Partner - China's GAC Wants To Team Up With Fiat-Chrysler to Sell Cars In The US

Guangzhou Automobile Group Co., whose partnership with Fiat Chrysler Automobiles NV enables the Milan-listed automaker to manufacture in China, wants Fiat Chrysler to return the favor by helping it enter the United States, a top executive told Reuters.

Chinese brands have yet to find much success abroad, generally selling small volumes in developing markets that are highly price competitive.

China exported 728,200 mostly home-brand vehicles last year, a decline of 20 percent as automakers struggled with instability in markets such as Russia and the Middle East, as well as with currency fluctuation, according to the China Association of Automobile Manufacturers.

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TheSteve - 4/28/2016 12:45:10 PM

+1 Boost

China seems to be the new 400 pound gorilla. They recently bought US-owned and operated Cirrus Aircraft, the Duluth MN company who designed and makes the world-famous and class-leading Cirrus SR22 all-composite, single-engine piston airplane with the full-airframe parachute. The gradual Chinese "owning" of America -- through acquiring American companies and property -- is not new. It makes me feel uncomfortable, though.

TomM - 4/28/2016 3:32:34 PM

+2 Boost

There was a time when Japan was the country that was buying America -and now it is China. Eventually in Japan - the economics that allowed to compete disappeared when workers wages had to compete as well. Add in the cost of transport - and you get little difference - and that is when Japan went on a nosedive.

While there are too many people in China for that to happen soon - the political control in China is likely to eventually be replaced with a more democratic (ALthough maybe not a democracy) one. That alone will change the world. BUT - what CHINA will do in changing the world eventually - is it will cause the demand for energy to rise - and the price will rise - and that means higher costs and transport costs that will eventually replace CHina with other more third world countries where wages are even lower. THAT is already happening in some ways.

nguyenvuminh - 4/28/2016 1:49:34 PM

+1 Boost

Anybody who thought Chrysler wasn't going to get sold again after FCA bought it is naive and don't understand Chrysler fully. It has the right American product (trucks and Jeeps) and nothing else. It has no technology and R&D assets. Its profitability is dependent on American truck/SUV buyers purchasing power. As the truck/SUV segment goes so goes Chrysler profitability but it's insufficient to reinvest in future technology. Mazda is similar. As such, its an acquisition target that gets squeezed by its owner for its temporary cashhoard. Daimler did it before and Fiat is doing it now. And the Chinese owner will do it again in the future. Chrysler is nothing more than a distribution outlet for other car mfrs that want to export more of their cars here in the US, while enjoying a little bit extra cash from the Jeep cars.

Vette71 - 4/28/2016 5:46:16 PM

0 Boost

Getting a distribution channel that is already in place along with services and understanding of the rules and regulations, etc. has value to a firm wanting to enter a market it is not in. Building your own takes a long time and a lot of effort. If the firm has products that distribution channel can use, in the case of Chrysler/Jeep/Dodge it would be cars versus trucks, the possibility of a win win could exist.

MDarringer - 4/28/2016 7:34:47 PM

+1 Boost

This is PRECISELY what Sergio should and MUST do. ASAP...yesterday!