Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Chinese automaker GAC enters N. American market, but under Dodge marque

Published 09/29/2021, 12:32 PM
Updated 09/29/2021, 12:36 PM
© Reuters. FILE PHOTO: A Stellantis sign is seen outside the company's headquarters in Auburn Hills, Michigan, U.S., June 10, 2021.   REUTERS/Rebecca Cook

BEIJING (Reuters) - Chinese automaker GAC is exporting China-made sport-utility vehicles to Mexico, in its first massive sales in the North America after years of planning to enter the key market. However, the cars are under Dodge marque.

The "Dodge Journey" SUVs are built based on GAC's vehicle design and made at its own Hangzhou factory. Stellantis will sell them at its dealership network in Mexico, according to a statement.

GAC has a joint venture with Stellantis, which is struggling to sell Jeep-branded vehicles in China, the world's biggest auto market, and has recently decided to close one of its two factories.

It is not rare for global automaker to sell vehicles under different brands in different regions but they tend to do that with their own models, rather than partner's.

GAC, which is among the few Chinese state-owned automakers that aim to develop their own brand globally, said it aims to sell 4,000 such vehicles in Mexico by the end of this year.

Like many Chinese companies including Great Wall Motor, GAC has long aimed to sell vehicles in the United States but the plan was progressing slowly due to restriction rules by the Trump administration.

"GAC will continue to strengthen and expand cooperation with Stellantis ... and continue to explore the Mexican Market, and radiate to surrounding areas to lay a foundation for further cultivation of the North American region," it said. It is now selling cars with its own brand in Asia, the Middle East and South America.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This is not the first time that GAC's model is sold through a global automaker's sales channel. Electric GAC cars were sold in GAC-Toyota venture and GAC-Honda venture's showrooms in China from 2018.

Other than the GAC model, an SUV, originally under Baojun marque, developed by SGMW, a joint venture between General Motors Co (NYSE:GM) and SAIC Motor, is sold in South America under Chevrolet logo.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.