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

Article by Christian A., 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

Recommended

The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Subaru has already announced that the all new Impreza will be out by fall this year. The 2018 model year not only gets a number of new upgrades, but it...
by - July 21, 2017
Do you ever wonder what challenges automakers have in selling limited edition cars? It’s different for each company but it can get stressful if the demand is high instead of...
by - July 21, 2017
Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 20, 2017
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