Fiat Group Automobiles S.p.A., Chrysler Group International LLC and GAC Group sign framework agreement to expand cooperation in China
Fiat Group Automobiles S.p.A., Chrysler Group International LLC. and Guangzhou Automobile Group Co., Ltd. (GAC Group) have signed a Framework Agreement to expand their cooperation on passenger car manufacturing and sales in China.
According to the framework agreement, the joint venture between GAC , Fiat and Chrysler Group International, which currently manufactures Fiat Viaggio and distributes imported models such as the Fiat 500, Freemont and Bravo in China, will expand its operations to allow the localisation in the coming years of more models from the Fiat portfolio to be introduced in the Chinese market.
After Fiat, the next brand planned to be localized by the GAC Fiat JV will be Chrysler Group’s Jeep brand (production in China for Chinese market only).
GAC Fiat Automobiles Co., Ltd. (GAC Fiat), incorporated on March 9, 2010, is jointly invested by Guangzhou Automobile Group Co., Ltd. (GAC) and Fiat Group Automobiles S.p.A. (FGA) on a 50:50 basis with the initial investment of RMB 5 billion Yuan and authorized capital of 1.8 billion Yuan (US$289 million).
The Company is located in Changsha Economic & Technical Development Zone, covering an area of more than 700,000 square meters. It is mainly engaged in the research and development, manufacturing, sales and after-sales services of vehicle, engines and parts & components. The plant will have an annual production capacity of 140,000 vehicles in Phase I and an annual capacity of 250,000 - 300,000 vehicles in Phase II. Currently it is producing Fiat Viaggio and the 1.4T-jet engine, and selling both local produced Fiat Viaggio and import products, Fiat Bravo, Fiat 500, and Fiat Freemont.