The company aims at producing 1.9 million Jeep units in the next two years.
Fiat Chrysler Automobiles have started operations at its new Guangzhou plant in China, producing Jeep Renegades sport utility vehicle. The company has first introduced its Jeep Cherokee last October 2015, before introducing the second vehicle to be produced in the country.
The Jeep brands suggest a global exposure as it is involved in many countries where it is sold and produced in factories and in countries such as China, Itlay, and Brazil. Sergio Marchionne, CEO of Fiat Chrysler said, “Today is an important step in our strategy to expand the Jeep brand’s global presence, and equally important, it represents a further strengthening of the joint enterprise with our respected and valuable partner here in China, the GAC Group.”
It is likely that customers are much fascinated for SUVs, thus, Fiat Chrysler are making their hopes up to cash in on demand. In response to this, the company aims to double their sales of Jeeps globally by 2018. About 1.24 million units were sold last year. Counts on sold appears to be higher, compared the reported sales last year.
The car maker aims at producing 1.9 million units of Jeep in the next two years in six different countries like US, China, Italy, Brazil, and India. One more country is expected to be confirmed by the company where units will be sold and produced in the future.
Among non-US markets with substantial numbers of Jeep lovers, China grants immense potential for the firm.
The capacity of the new Guangzhou plant holds about 160,000 vehicles every year, and is a joint venture between Fiat and Guangzhou Automobile Group Co Ltd. Fiat also considered joining the Indian market in July last year with an investment amounting $280 million.
It was recently reported that Sergio Marchionne, the Chief Executive Officer handed a statement towards Tesla Model 3. After Tesla Motors unveiled its most-promising EV during an event last March, over 325,000 pre-orders were tallied for this model in a week alone. The fascinating numbers of Model 3 reservations are already expected by Mr. Marchionne.
He mentioned that Tesla has succeeded to receive vast orders as it has accomplished producing a hype around its car for the masses, however, he disputed that “making cars, selling them and making money doing so” is a different story.
Mr. Marchionne stated that Fiat Chrysler is able to build Tesla Model 3 rival in a span of 12 months, if the money-making plans of Tesla, over its new model, would go straight. According to a journalist, he mentioned that if Elon Musk would get higher profits in selling Model 3, then he himself “will do it as well, copy him, add Italian style to it and put it on the market within 12 months.”
Fiat Chrysler In Search for Merger
Chief Executive Officer Sergio Marchionne said that Fiat Chrysler is still looking for a merger partner, but there are only few conceivable partners left.
It has been a couple of years since Fiat Chrysler is in search for a partner to share its development costs, but the plan did not go accordingly. After attempting a merger with General Motors and failed, Marchionne announced on the Geneva Auto Show that his company was not involved in any tie-up at the moment.
However, he stated that he is still open for alternatives. Toyota, Volkswagen and Ford were named as the only remaining potential candidates for a merger for these auto companies could be interested in such collaboration.
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