Fiat Group and Guangzhou Automobile Group Co. have reached an agreement to build Jeeps in their joint-venture assembly site in Changsha, China, according to reports from the Chinese media. National Business Daily cited Changsha city government sources as saying that the companies will ink the production plan agreement in the coming months.
Chrysler Group and parent Fiat Group reached a preliminary agreement in January 2013 with Guangzhou Automobile Group Co. to produce Jeeps in China. But Fiat and Guangzhou Auto failed to agree on where to build the Jeep vehicles. While Fiat-Chrysler wants the Jeep be built at GAC Fiat Automobile Co., Guangzhou Auto wants to produce them at its own assembly plant in Guangzhou, China.
GAC Fiat is a 50-50 joint venture between Guangzhou Auto and Fiat. The joint venture has an annual output capacity of 140,000 vehicles. Jeep vehicles will share an assembly line with the Fiat Viaggio compact sedan at the GAC Fiat plant, which will improve the site capacity utilization, according to the National Business Daily. GAC Fiat sold only 20,000 Fiat Viaggios in the first seven months of 2013.