Fiat Chrysler Automobiles is close to announcing a joint-venture with a Chinese auto company, according to Jeep CEO and President Mike Manley. During the domestic unveiling of the 2015 Jeep Renegade Wednesday at the 2014 New York International Auto Show, Manley hinted that it could announce the joint venture with Guangzhou Automobile Group Co. to build Jeeps in China by the end of the month.
NEW YORK- Fiat Chrysler Automobiles is close to announcing a joint-venture with a Chinese auto company, according to Jeep CEO and President Mike Manley.
During the domestic unveiling of the 2015 Jeep Renegade Wednesday at the 2014 New York International Auto Show, Manley hinted that it could announce the joint venture with Guangzhou Automobile Group Co. by the end of the month to build Jeeps in China.
“Jeep is now fully able to rapidly expand its manufacturing footprint on a global scale,” he said during the unveiling about FCA. “This will give Jeep the opportunity to truly compete in some of the largest and fastest growing markets in the world.
“Now while we’ll announce additional details before the end of April, my point today is simply this: Jeep is strategically expanding its global footprint in China, in Brazil and in Europe.”
Manley said the expansion is part of a larger plan to match “global market opportunity with local manufacturing presence.”
Jeep CEO and president Mike Manley unveils the 2015 Jeep Renegade April 16 at the 2014 New York International Auto Show. (Michael Wayland | MLive Detroit)For non-Chinese automakers to build vehicles in China, the government requires them to partner with a local company.
Manley, during an interview with MLive following the unveiling, would not elaborate on any details, but confirmed he was referring to Guangzhou Auto, which Fiat and Chrysler officials signed an agreement with in January 2013.
“It’s just a complex negotiation discussion,” Manley said in response to what has been holding the joint venture back.
Manley, who is heading to the 2014 Beijing International Motor Show following New York, did say announcing the joint venture at an auto show “would be the ideal place to do it.”
During the 2014 North American International Auto Show in January, Manley and Chrysler-Fiat CEO Sergio Marchionne said although the company plans to produce some Jeeps in foreign markets, don’t expect the brand’s two so-called bookends – Wrangler and Grand Cherokee – to be produced outside of the U.S.
Since 2012, Marchionne has said Chrysler is planning to produce Jeeps in China in “order to satisfy local market demand,” but it should only “ultimately help bolster the Jeep brand, and solidify the resilience of U.S. jobs.”
Jeep production supposedly moving to China was a political football during the 2012 presidential election between President Barack Obama and Republican opponent Mitt Romney.