AutoBeta(AutoBeta.net)07/30 Report--

Fiat Chrysler ("Fick Group") and Guangzhou Automobile Group Co. ("GAC GROUP") said on their official Weibo that "during the Chengdu Auto Show, Fick Group and GAC GROUP signed a memorandum of strategic cooperation in Chengdu, and the two sides will further strengthen cooperation in the Chinese market and explore new cooperation opportunities in depth."

It is understood that Guangzhou Auto Fick was established on March 9, 2010. it was jointly invested by GAC GROUP and Fick Group with a share ratio of 50:50, with a total investment of about 17 billion yuan. At present, Guangzhou Auto Fick's Jeep brand includes Free Light, Commander, Chief Commander, Compass, Freeman, and Commander PHEV and Commander PHEV have a total of seven models on sale.

According to the data, GAC Fick's sales increased by 27084% year-on-year to 146439 vehicles in 2016, and reached 205177 vehicles in 2017, an increase of 40.11% over the same period last year. However, GAC Fick's performance in the Chinese market suddenly took a sharp turn for the worse, with sales falling 38.99 per cent to 125181 in 2018 and widening again in 2019, with sales falling 40.96 per cent to 73907.

As a result of the epidemic and the further decline in the auto market, GAC Fick's sales fell sharply again. In the first half of this year, GAC Fick's cumulative sales fell 50.97% to 17577 vehicles, of which June sales fell 39.00% to 3158 vehicles. Judging from the cooperation between Fick Group and GAC GROUP in the Chinese market, its purpose is also to boost its sales performance in the Chinese market. At present, the merger of FCA and PSA is imminent, and the Chinese market is regarded as one of the most important markets, but the current market performance of both PSA and FCA is difficult to be optimistic. Despite the difficulties in its development in China, FCA is pinning its hopes on the Jeep brand. According to previous plans, the Jeep brand will launch 10 plug-in hybrid models and four all-electric models by 2022, and the partnership is expected to speed up the launch of new cars in China.

Jeep's performance in the Chinese market is not as expected, which is not only related to the downturn of the car market itself, but also related to the quality of the product itself. In January, GAC Fick announced a recall of 26382 1.3T 2019 compass and free vehicles in China due to insufficient waterproofing of the starter's internal excitation switch, which could cause the engine to catch fire in extreme cases.

In the eyes of consumers, Jeep is a "feelings" brand, but at present, apart from "feelings", what does Jeep leave to consumers?

Regarding this cooperation, Mak Mingkai, CEO of Fick Group, said: "after years of successful cooperation, today is an important step for GAC GROUP and Fick Group to write the next chapter." As the largest and fastest growing auto market in the world, China presents great opportunities, and we look forward to continuing to develop the Chinese market together with GAC. " In the face of the cold winter of continuous sales in the Chinese market, in the face of poor quality control, does GAC Fick still have a chance to turn around?

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