Fiat Chrysler is expecting to finalize an agreement this month for Jeep production in China. Fiat Chrysler Sergio Marchionne remarked at the Geneva auto show approval of the deal had been delayed due to Chinese concerns on the split ownership of Jeep prior to the Jan. 1 agreement in which Fiat fully acquired ownership of Jeep.
"On Jan. 1, 2014, when we announced the agreement with the [UAW retirement healthcare trust] for the acquisition of the minority stake in Chrysler, those issues vanished," Marchionne said. "We have been hard at work in the last 60 days putting what I consider to be the final touches on what I hope is the final agreement with our partners in China to try to get this process under way."
Fiat Chrysler will partner with Guangzhou Automobile Group Co. to build a $771-million site in the Panyu district of Guangzhou, Bloomberg reported in December 2013. The site would have an annual capacity of 60,000 units. Jeep brand boss Mike Manley told Automotive News in an interview that the Cherokee and the smaller Renegade shown at the Geneva auto show could be produced in China.
Building vehicles in the country would allow the brand to avoid import tariffs. According to Manley, discussions are on track, but said that the approval process may takes a little longer than expected or may also be smoother." [source: automotive news - sub. required]