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Thursday, April 26, 2012

Jeep hopes to exploit China's appetite for SUVs!

Beijing -- Chrysler Group LLC introduced a concept Jeep vehicle at the Beijing auto show this week designed especially for the Chinese market.
But just when that model -- or any Jeep model -- will be produced in China is unclear as talks continue with Chrysler's partner in China about localizing production of the Jeep brand.

Chrysler partners with Guangzhou Automobile Group in China and the joint venture is set to begin production of a Chrysler model at a new plant in the central China province of Hunan in just a few months. That plant will have an annual capacity of above 200,000 units.

Adding production of Jeep models would require additional capacity, said Mike Manley, Chrysler's chief operating officer for the Asia region and CEO of the Jeep brand.

There is room for expansion at the site, he said.

Manley made no secret of the fact that he would like to produce Jeep models in China as soon as possible.

But Chrysler wants to ensure that it shares a "common collective vision" of the brand with GAC before pursuing domestic production, said Manley.

Chrysler has not applied to produce Jeep models in China.

Automakers must receive permission from the Chinese government to produce a model and "approval can take some time," Manley said.

Currently, Chrysler sells the Jeep Grand Cherokee, Wrangler, Compass, and Patriot in China. All of the models are imported. As for future models, in an ideal world "a B segment Jeep would do incredibly well here in China," Manley said.

The only Jeep model that might not sell well in China is the Grand Wagoneer, he noted.

Jeep sold 22,294 units in China last year. It has 110 dealers in the country and plans to have 150 by the end of 2012.

Sales in China's SUV segment have grown 46 percent annually over the last five years, said Manley, and represent more than 15 percent of passenger vehicle sales in China.

The Jeep brand has a long history in China and a loyal fan base.

Chrysler hosted an "Ultimate Journey" road trip to Burma in 2011 and has organized "Camp Jeep" events in rugged areas of China. Hundreds of Jeep owners participate annually in those events, says Chrysler.

It is one of the most customized brands in China according to Yale Zhang, president of the Shanghai-based consultancy Automotive Foresight.

The concept vehicle Chrysler is showing in Beijing -- called the Jeep Wrangler Dragon -- is a Jeep Wrangler Rubicon model styled in the United States by a Chinese designer.

Painted black with bronze-gold details, it has 18-inch five-spoke wheels that are supposed to resemble dragon's claws.

The interior is more refined than your average off-road vehicle with leather seats and a dragon pattern theme throughout, including laser-etched dragon patterns on the head restraints.

The Dragon Jeep could go into limited production in the United States if the response is good in China, said Manley.

Future Jeep models in China will feature more refined interiors because that is important to Chinese customers, said Manley. Chrysler has made an effort to listen to the "collective voice of the customer," Manley said.


Source:
autonews.com