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Wednesday, March 18, 2009

Chrysler-Great Wall JV Comes to a Halt


Last year, Great Wall Motors and Chrysler signed an agreement to share parts, technology, and sales networks in both China and the USA. However, according to this afternoons media reports it appears that the JV has come to a halt as Chrysler is fighting for survival and Great Wall are concentrating on their own development.

The agreement signed last July stated that Chrysler were searching for expansion in China, however, the sudden turn in the economy has left Chrysler in a poor situation. The JV could have been the start of something really beautiful for both companies, as GWM already make an interesting array of SUV’s (perfect for Jeep tech) and have plans for a very large R&D center (perfect for low cost research). GWM also had plans to make their own range of sedans, which could have been aided by a Chrylser input.

The major issue for Chrysler may not be the economy, but rather their latest JV partner, Fiat, who have a rather interesting ongoing spat with Great Wall motors over the Perry mini car, that looks rather like the Fiat Panda. Could have Fiat played a hand in stopping the JV? Possibly.

Great Wall sold 125,000 vehicles in China last year, and exported 55,000 to foreign markets. This year they are pushing to sell 200,000 vehicles, GWM are reportedly planning to use the lull in sales to focus heavily on R&D which will give them excellent cars in which to push into Europe once the economy picks up.

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