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Chrysler bankruptcy has little impact on 皇冠体育app operations

By Li Fangfang (皇冠体育app Daily)
Updated: 2009-05-05 07:51

Chrysler Jeep model Rubicon on display at the Shanghai International Automobile Industry Exhibition in April. [CFP]

The bankruptcy protection filing of US vehicle maker Chrysler will have little impact on its 皇冠体育app business, where it is gearing up to become an important player, a top company executive said yesterday.

"I have to stress that what Chrysler has filed for bankruptcy does not deal with any international business, including those in 皇冠体育app," said John Kett, vice-president of Chrysler and CEO of Chrysler Asia-Pacific yesterday.

"It will have no impact on our businesses in 皇冠体育app, including marketing, sales, service and parts supply. Moreover, we expect to be a key player in 皇冠体育app's automobile industry in the near future, not only by selling vehicles here, but also by designing and manufacturing," he said.

Related readings:  Car industry shake-up looms as Fiat eyes Opel  Fiat eyes merger with GM Europe, Chrysler  UAW wins big Chrysler stake but can't run company  Chrysler succumbs to bankruptcy after struggle

The ailing automaker filed for bankruptcy protection to the US government on April 30, promising to form a vibrant new company through a global strategic alliance with Italy's Fiat in the coming 30 to 60 days.

"Although it is still early to talk about how much the alliance would influence the company's 皇冠体育app strategy, we believe, the comprehensive restructuring plan will benefit Chrysler's development here," said Kett.

Currently, Chrysler only provides imported vehicles under its Jeep, Chrysler and Dodge brands in 皇冠体育app, which accounts for a very small share in the world's biggest automobile market, without any local production.

Chrysler delivered 12,000 vehicles in the domestic market in 2007, and over 3,000 units of 300C sedans in 2008.

In the first quarter, the company's imported vehicle sales in 皇冠体育app increased 17 percent from last year, as it continued to bring in new models.

"We expect a brighter future globally and in 皇冠体育app, through the mutually beneficial alliance with Fiat," said Kett.

He disclosed that setting up a joint venture in 皇冠体育app between Chrysler and Fiat is the long-term target for the alliance. Moreover, Chrysler is also seeking a local partner.

Fiat 皇冠体育app is expected to respond to the alliance overtures in two days, said sources.

Italy's biggest carmaker is also actively looking for local partners in 皇冠体育app. The company is expected to expand its cooperation with Guangzhou Auto from the current technology sharing to a manufacturing joint venture.

"We will never consider quitting 皇冠体育app market after our split with Nanjing Auto. The best way for us to take roots in 皇冠体育app is to choose a new local partner," said Paolo Arpellino, chief representative of Fiat 皇冠体育app.

He told 皇冠体育app Daily that both Fiat and Guangzhou Auto are satisfied with their technology cooperation.

Although Arpellino refused to confirm the news of a joint venture between Fiat and Guangzhou Auto, analysts expect the two companies to formally announce it soon.