Chrysler currently imports Jeep’s Grand Cherokee (top), Commander, Compass, Patriot and Wrangler, Dodge’s Journey (middle) and Caliber (bottom) and Chrysler’s Sebring, PT Cruiser and 300C, into China.

Chrysler is following Fiat’s recent path in trying to secure a new Chinese manufacturing partner to gain a firm foothold in the world’s biggest new car market as both companies currently have in common a virtually zero presence in China and the wider Asian region which is also experiencing strong growth, according to media reports. Since it emerged from the Chapter 11 bankruptcy process earlier this summer Chrysler Group has targeted fresh global expansion as one of the key areas that Fiat can provide input.

According to the Reuters news agency which quotes three people with knowledge of the discussions, Fiat and Chrysler have been talking to a number of the leading Chinese carmakers as they look towards a new strategy in China. Fiat and Chrysler have in common an inability thus far to have taken advantage of the lucrative opportunities that China offers and both are keen to set this right and make up on lost ground. Chrysler spokesman Gualberto Ranieri told Reuters that China would be a crucial market but that no deal with a Chinese partner has yet been signed. "China is an extremely important market for Chrysler to get into and there is great interest in that market," he said. Prior to entering bankruptcy and signing a deal with Fiat, Chrysler had held talks with Beijing Automotive Industry Holding Co, Tempco International Group, Hawtai Automobile and Chery Automobile Co.

Reuters added that two people familiar with the preliminary discussions in China said Fiat and Chrysler representatives had expressed specific interest in finding a Chinese manufacturing partner for its the latter's C-platform which underpins Jeep’s Compass and Patriot as well as the Dodge’s Caliber. These two models are already imported and sold in China by Chrysler along with the Jeep’s Grand Cherokee, Commander and Wrangler, Dodge’s Journey and Chrysler’s Sebring, PT Cruiser and 300C. However hefty import duties mean that the numbers sold are limited to just a trickle and the situation is very similar for Fiat, which imports a range of cars including the Grande Punto, Linea and Bravo, since it kick started its sales again in the country last August.

Fiat has struggled to regain a foothold in China following the winding up of a joint venture with Nanjing Auto a couple of years ago while a proposed alliance with Chery Automobile didn’t get off the ground. However in July Fiat finally found a Chinese partner in Guangzhou Auto which is expected to start production of Fiat badged cars late next year. Guangzhou Auto was one of the companies approached by Chrysler representatives, according to one of the sources, who asked not to be named because of the confidential nature of the talks, said Reuters, adding that the U.S. carmaker’s representatives also visited Changfeng Auto in Hunan to discuss the possibility of selling engines to Changfeng or having the Chinese automaker start local production of a Chrysler model according to a source with direct knowledge of those talks. Changfeng is rumoured to have shown an interest when GM put its Hummer brand up for sale but according to Reuters it isn’t interested in either local production of Chrysler vehicles or acquiring Chrysler's engines or technology.

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