Fiat and Chrysler today announced plans to start localized production of Jeep vehicles in China. The companies announced the production, which Jeep CEO and President Mike Manley alluded to earlier this week in New York, in conjunction with a joint-venture with Guangzhou Automobile Group Co., a Chinese automaker that Fiat and Chrysler officials signed an agreement with in January 2013.
DETROIT, MI- Fiat and Chrysler today announced plans to start localized production of Jeep vehicles in China.
The announcement, which Jeep CEO and President Mike Manley alluded to earlier this week in New York, was made in conjunction with a joint-venture with Guangzhou Automobile Group Co., a Chinese automaker that Fiat and Chrysler officials signed a memorandum of understanding with in January 2013.
According to the agreement, the joint venture, which will be known as GAC Fiat, is expected to begin localized production of three Jeep models by late 2015 in Guangzhou. Officials said the joint venture will "finalize its localized production plans in the near term," which includes the consideration of a Jeep model uniquely designed for China.
"Today's announcement represents the next chapter in the proper utilization and expansion on a global scale of the Jeep brand," said Sergio Marchionne, CEO of Fiat and chairman and CEO of Chrysler. "Equally important is our continued development in the Chinese market with an established and respected partner such as Guangzhou Automobile Group."
A Chrysler spokeswoman confirmed that the vehicles to be produced in China are only for that market, but she declined to elaborate on what vehicles are expected to be produced there.
During the unveiling of the 2015 Jeep Renegade Wednesday at the New York International Auto Show, Manley hinted that the production and joint-venture announcement with Guangzhou Automobile was expected to happen by the end of the month.
Chrysler CEO Sergio Marchionne addresses guests, Friday, May 21, 2010 as the automaker introduced its first new offering in more than a year in Detroit.“Jeep is now fully able to rapidly expand its manufacturing footprint on a global scale,” said Manley, who also serves as chief operating officer for Asia Pacific. “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.”
In 2013, Jeep realized global sales of more than 731,000 units, with an annual growth rate of 4 percent and an annual growth rate of 29 percent in China. Last month, the Jeep brand set a worldwide record with nearly 85,000 units sold.
China is the largest Jeep market outside of the U.S., with nearly 60,000 Jeep vehicles sold in 2013.
During the 2014 North American International Auto Show in January, Manley and Marchionne said although the company plans to produce some Jeeps in foreign markets, don’t expect the Wrangler 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.