Chrysler joins hands with Great Wall to expand in China
Chrysler LLC, the third largest car maker in the U.S., has signed a Memorandum of Understanding (MOU) with China’s Great Wall Motor Company for establishing a long-term strategic business relationship, said industry sources.
According to the MoU, the two parties will share a distribution network and initiate cooperation on spare parts and technological capabilities. The MoU is a part of Chrysler’s broader endeavor to seek opportunities to expand its presence in China through the right partnerships, said the company.
Owing to its weak relationships with local car markers, Chrysler lagged behind rivals General Motors, Volkswagen and Toyota in the Chinese market.
Great Wall, the nation’s major manufacturer and exporter of sports-utility vehicles, will be the second partner for Chrysler in China.
Chrysler wants a presence in the world’s second largest car market, particularly to compensate for a weakening home market. It has been in talks with several Chinese auto firms, including Chery, the largest home-grown automobile brand, for setting up a car manufacturing venture. However, no further information about these talks has come in so far.
Beijing Automotive Industry Holdings Co is the first car venture Chrysler inaugurated in China in 1983.
Tags: Auto, car-maker, Chery, Chrysler, General-Motors