Fiat and joint venture partner Guangzhou Automobile Group have officially announced plans to begin Jeep production in China by late 2015.
Under the terms of their agreement, the two automakers will assemble three Jeep models – likely the Cherokee, Renegade and Wrangler – specifically for the Chinese market at a new factory that will be built in the city of Guangzhou. The facility, which will have an annual capacity of 60,000 units, may also screw together a new, China-specific Jeep model in the future.
Though it comes after nearly two-and-a-half years of negotiations, the move will be well worth Fiat’s time as it will allow the automaker to finally avoid the hefty import tariffs that currently drive Jeep prices upwards and put a damper on Chinese sales.
“Today’s announcement represents the next chapter in the proper utilization and expansion on a global scale of the Jeep brand,” said Fiat-Chrysler CEO Sergio Marchionne. “Equally important is our continued development in the Chinese market with an established and respected partner such as Guangzhou Automobile Group.”
Jeep was actually the first foreign automaker to build vehicles in China, with local assembly starting in 1984, but the brand ended production in the country in 2006.
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