Fiat Chrysler (FCA) in China: Strategy to reach sales of 850,000 units in 2018
Plans to launch eight local models and annually produce 775,000 units by 2018
In May 2014, the newly-merged Fiat Chrysler Automobiles N.V. (FCA) announced its new global 5-year business plan (2014-2018) for FCA Group, including FCA's Chinese enterprises. This report describes FCA's new business plan, including its sales strategies, model plans and plans for expanding its production capacity in China based on FCA's 5-year business plan, for up to 2018.
FCA targets to sell 850,000 passenger cars in China in 2018
FCA set its 2018 sales target for passenger cars in China at 850,000 units, up 5.6 times from the 2013 result of 129,000 units. FCA expects huge increases in sales of locally-produced Fiat models as well as in sales of Jeep models, which the company also plans to produce in China.
FCA to expand passenger car production capacity to 775,000 units by constructing Guangzhou branch plant, etc.
To achieve this ambitious vehicle sales target, FCA will expand its annual production capacity for passenger cars in China to 775,000 units by 2018. To do so, FCA is constructing a new branch plant in Guangzhou City, Guangdong Province. The company is also expanding its main plant in Changsha, Hunan Province.
In line with these actions, FCA will expand its production capacity for powertrains in China to annually produce 820,000 engines and 700,000 transmissions by 2018.
FCA to offer lineup of 19 passenger cars, including imported models
According to FCA's model plans, production of Jeep models will restart in China in 2015 at the earliest. FCA expects Jeep models will greatly help the company to achieve its sales target. The company will increase the number of locally-produced models from two at present to eight by 2018. The company will also start the import and sales of an Alfa Romeo model to rival with German luxury cars.
* Fiat Chrysler's new five-year plan: Sales target of 7 million units by 2018 (Jun. 2014)
* Beijing Auto Show 2014: Fiat-Chrysler uncovers Jeep design concept and Fiat Ottimo (May 2014)