Skip to comments.Chrysler Looks to Restart Jeep Production in China
Posted on 01/16/2013 3:08:05 PM PST by tobyhill
Chrysler Group LLC majority owner Fiat SpA F.MI -2.03% has struck a deal with Guangzhou Automobile Group 2238.HK -5.10% to restart Jeep production in China, a major step toward expanding the brand in the world's largest auto market.
The Jeep was first launched in China in 1983, and although production there ended in 2009 when Chrysler filed for bankruptcy, the brand remains well recognized. Today, Jeep sells three models in Chinathe Grand Cherokee, Wrangler and Compassall imported.
Fiat said Tuesday it had signed a "framework agreement" to expand its partnership with Guangzhou to build more Fiat models, as well as to add Jeep production to China. Fiat already jointly builds the Fiat Viaggio, a midsize sedan, with the state-owned Guangzhou and imports several other models, including the subcompact 500.
The company didn't offer an exact time frame for Jeep production in China, saying only that any models built there will be for the Chinese market exclusively. At this point, it's unclear what models are being considered.
(Excerpt) Read more at online.wsj.com ...
didnt romney warn about this?
Maybe they’ll rebrand it as “CHEEP”
But according to Politico; this was the biggest lie that Mitt told during the election! Funny how this works.
An hour after each roll over you’ll want to roll over again.
Now the Fiat-Chrysler people are promising not to import the Chinese-built Jeeps, but times being what they are, and a chance to trade on the good intangibles of the brand, while keeping down costs of production, do seem to support the conjecture, that ALL Jeep production wil eventually move to China.
Maybe they could start building the old CJ-5 and CJ-7 models as their price leaders and for the rough back country.
Jeep Cherokees (XJs) were built in China after being discontinued herein the states.
They were built specifically for the local market, and XJ afficionados here n the states were told politely to bugger off when they started asking about importing them here.
The XJ was a great vehicle, currently the one of choice for the serious Jeep-moders out there. It would he nice to have them back in production, along with the CJ-5 and TJ Wrangler. CJ-7s are too big for my taste and I really dislike the current series Wrangler.
Other links about this (go all the way back to last Oct):
It just makes sense to produce cars for the Chinese market in China. Consider the transportation costs for shipping a Jeep from Detroit to Beijing.
As an example, Nissan has shifted production of the Leaf from Japan to Tennessee. The batteries are produced there, too. In doing so, they've been able to drop the price of the car by five or six thousand dollars.
This just doesn't smell conspiracy-worthy.
Yes the US is becoming Japan’s Mexico.
“This just doesn’t smell conspiracy-worthy.”
The conspiracy involves the fact that our jobs have been shipped there (along with the incomes) because there are 1 billion+ consumers there (and 1 billion+ in neighboring India), and there is simply no way we can manufacture here with only 300 million consumers (with increasingly crappy jobs). Even leaving our borders open isn’t drawing enough people; there is no reason to make anything here anymore, and as a result there is no reason to try selling here either (since disposable income for most people disappeared years ago). We have traded positions with Red China, working for sustenance while they build a middle class in the same manner we did 60 years ago.
It is actually a creepy thing to behold.
I bought a BRAND NEW 1995 Jeep Cherokee. Maintained it well.
The assholes cheaped out by using silicone instead of a valve cover gasket. So needless to say one day the oil started leaking out the valve cover. Cooked the seals one day when it overheated.
Now with a 2005 Liberty, ALL the windows fell down due to a disintegrated CHEAP plastic piece that connects the glass to the mechanism. Suction cups hold up all the windows.
NEVER BUY A JEEP PRODUCT ! ! !
“Suction cups hold up all the windows.”
That’s messed up.
I had bought a sixpack of underwear a while back, and was complaining to my wife that 2 pairs had small holes in them (which have since grown). As I tossed them and took more from the pack, I noticed that it said “irregular” right on the wrapping. These things weren’t at a price that was too good to be true; the fact is that we are going to be reduced to living as Asian peasants (who probably use one pair of underwear all week).
A couple points.
A market of 300 million is nothing to sneeze at and we have not sunk to the level of the Chinese [2/3 the GDP with 4 times the population] yet. That's 17% per capita of ours.
The Chinese economic juggernaut has been wildly exaggerated.
Don't ignore that the Germans, the Japanese, and the Italians are moving production of their vehicles over here. They have created tens of thousands of jobs from Indiana through the Deep South.
Now, that is not to say that I'm sanguine about our economic future. Taxes are too high, monetary inflation is ruinous to business calculation, and Obama's policies are stifling investment in expansion.
But those are all fixable. There is nothing necessary or inevitable in our seeming economic decline. It is -- all of it -- a result of meddling government policies and it can be reversed.
Whether it will or not, I can't say.
An interesting analogy and, perhaps, true for all the same reasons. Do you find that to be a bad thing?
Not at all.
The Indiana Honda plant pays a good wage and benefits.
They had no problem at all finding qualified people.
Now Subaru is planning a big expansion to their factory here.
Without the UAW, US car factories are extremely competitive with pretty much anybody in the world.
“A market of 300 million is nothing to sneeze at and we have not sunk to the level of the Chinese [2/3 the GDP with 4 times the population] yet. That’s 17% per capita of ours. The Chinese economic juggernaut has been wildly exaggerated.”
You are ignoring a frightening trend; for every new job moved here from elsewhere ten are leaving. American (and European) labor costs too much; the jobs leave, the birth rate drops, and the cycle goes on & on. Red China has a population that is naturally growing, accompanied by a growing economy; we have neither (that is where the consumers are). The United States will be here in 100 years; it will bear NO resemblance to what we see today.
The US we see today bears NO resemblance to the US of 50 years ago demographically, culturally, etc. None.
Good. I wasn't sure if the comparison between Mexico and America was meant as a positive or a negative. As I say, I think the analogy is quite good.
I have a 1996 Jeep Cherokee with 315,000 miles on it. Replaced the floor just last year. The straight 6 is one of, if not the, best stock engines ever made. I also have a 98 with the same engine. Runs like a top. And I do all my own maintenance.