Fiat and Guangzhou reaches deal to build three new Jeep vehicles in China

Article by Christian Andrei, on April 23, 2014

Fiat Group is planning to commence production of Jeeps in China by late 2015 following an agreement with local partner Guangzhou Automobile Group. Chrysler said in a statement that Fiat and Guangzhou Auto will build three new Jeep vehicles in Guangzhou, China. The Fiat- Guangzhou Auto joint venture will soon finalize its production plans, which could include a Jeep designed to appeal to Chinese consumers.

The venture will allow Jeep to resume output in China after terminating production in the country in 2006. Taking advantage of the surging global demand for Jeep is part of the growth strategy of Fiat chief executive Sergio Marchionne as he marries the Italian carmaker with Chrysler.

Marchionne said in a statement that joint venture agreement represents the “next chapter in the proper utilization and expansion on a global scale” of the Jeep brand. Marchionne is eyeing to sell over 1 million Jeep deliveries globally this year, reflecting at least a 36-percent surge from 731,565 SUVs sold in 2013.

Chrysler, Fiat and Guangzhou Auto reached a groundwork deal in January 2013 to produce Jeep models in China. The China government separately green-lighted plans of the Chinese and Italian partners to spend CHY4.7 billion ($755 million) in a new site that could produce 60,000 vehicles annually.

Fiat and Guangzhou Auto already produce the Viaggio sedan together in China, with plans to add Ottimo output this year. Marchionne stated in March that the merged company -- Fiat Chrysler Automobiles NV -- may eventually increase annual deliveries by up to 55 percent to 7 million vehicles, as boosted by Jeep's gains. [source: Bloomberg]

Topics: fiat, jeep, china, production

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries