Jeep wants to begin production in China

[TerryMason]

Automotive News reports this morning that Jeep CEO Mike Manley hopes to negotiate a deal in the next several weeks that will result in Jeep production in China. Manley departed for China Wednesday to negotiate a deal with Guangzhou Automobile Group Co Ltd.

The Grand Cherokee, Wrangler, Patriot and Compass currently are imported and sold in China. In 2010, Chrysler sold 11,646 Jeeps in China, including 7,736 Compasses.

Manley said the Compass, Patriot and Wrangler would be the obvious choices for Chinese production, as would the SUV under development that is smaller than the Compass and Patriot. That unnamed vehicle is being developed on a front-drive Fiat platform and will go into production in 2013.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20110915/GLOBAL03/110919885/1131

The truth is that nothing brings Democracy to a country faster than a Jeep. Of course usually it's a Jeep carrying U.S. Armed Forces.

 

[clydethepirate]

I believe that Jeep is simply wants to partner with a chinese business to avoid any import tax that applies to selling products in China.
However plans to continue production of the Jeep in the U.S.
Thats what I make out of this... Do I like it? No, Not at all.
I say,
Shame on Jeep for outsourcing and american Icon....
I guess the All mighty dollar wins again...

 

[superj]

i think your right, i think they will still produce here because the cost of producing there and shipping here would be outrageous and probably make the jeep to expensive for the people who already are supporting its high price. part of the high cost of an import is the fees for bringing it here to hte usa

 

[TerryMason]

I don't see this as a bad thing at all. I read this article to say, Jeep wants to build and sell cars in China. This sounds similar to what Toyota does, even though they are a Japanese company, then still build and sell cars in the US.

The number of registered cars, buses, vans, and trucks on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020. Jeep would be crazy to not try to get a piece of that market.

Now if they begin importing Chinese build Jeeps to the US that would be a different story.

 

[82cj7son]

I agree with terry. china is the largest market for anything. it would be down right stupid not to try to tap into that market. as long as they produce vehicles in America for America it's cool.

 

[LilRedYJ]

Ideally, by partnering with a Chinese co., Jeep will be able to not only maintain it's current share (percentage) of a growing market ... Which in itself is a good move. But in addition, possibly increase that percentage... All while maximizing the profit margin on their Chinese sales.

This, in theory, allows domestic production costs to remain sufficient enough to support the standard of living costs of it's workers... While lessening the need for the domestic consumer to carry the entire burden of overall company profitability ... While domestic sales will always generate a profit... It won't have to serve as the sole source ....

Just a thought...

[☠]lllllll[☠] 89 YJ ...SOA +6.5...44"Trxus' I Love my dirtYJeep! [☠]lllllll[☠]

 

[82cj7son]

ideally that would happen but in reality they'd probably keep the same prices or raise prices while not raising the wages of workers as much as they should. granted the workers are probably unionized so they would get more than the average american but not nearly as much as they should...

 

[frhrwa]

now that's what we need, another way to import poison.. wonder where they will hide it this time?