Fiat Group Automobiles, Chrysler Group International and GAC Group to Produce Jeep vehicles in China for Chinese market
Fiat Group Automobiles S.p.A., Chrysler Group International LLC and Guangzhou Automobile Group Co., Ltd. (GAC Group) have reached an agreement to expand the joint venture partnership. Under the agreement, the joint venture, GAC Fiat, will begin localized production of three new Jeep vehicles for the Chinese market, expanding the portfolio of Jeep sport-utility vehicles (SUV) currently available to Chinese consumers as imports.
The expansion of the cooperation and the related projects have already been approved by the relevant government authorities. 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. Production is expected to begin by late 2015.
To reach the necessary capacity for introducing the Jeep models, GAC Fiat is establishing a manufacturing branch in Guangzhou, where the Jeep vehicles will be produced.
In the coming term, the two parties will strengthen cooperation as to satisfy the demands of customers and to move the localization of Jeep models forward together with the continued development of GAC Fiat.
In 2013, Jeep realized global sales of more than 731,000 units, with an annual growth rate of 4% and an annual growth rate of 29% in China. Last month, the Jeep brand set a worldwide record with nearly 85,000 units sold. China continues to be the largest Jeep market outside of the US, with nearly 60,000 Jeep vehicles sold in 2013.