Following lengthy negotiations, Fiat and joint venture partner Guangzhou Automobile Group have reached an agreement concerning a location for Jeep production in China.
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The two automakers will build Jeeps at their jointly operated plant in the central China city of Changsha, according to an Automotive News report citing Chinese media sources.
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Jeep, which in 1983 became first western brand to assemble vehicles in China, has long angled to resume production in the world’s largest new car market. Local assembly would allow Jeep ti sidestep the hefty import tariffs that currently force its prices upward and limit sales.
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But talks with Guangzhou, which began in 2011, have moved forward at a deliberate pace. In January, Jeep and its parent company, Fiat, negotiated a preliminary agreement with Guangzhou to build SUVs together in China, but a dispute over the production location had held up proceedings until now. An official accord is expected to be signed sometime over the next few months.
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In the past, Jeep CEO Mike Manley has suggested that the new Cherokee will likely be the first Jeep to be screwed together in China. Manley believes that the Cherokee could double Jeep’s Chinese volume, which totaled 46,000 units last year.Â
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The two automakers will build Jeeps at their jointly operated plant in the central China city of Changsha, according to an Automotive News report citing Chinese media sources.
Â
Jeep, which in 1983 became first western brand to assemble vehicles in China, has long angled to resume production in the world’s largest new car market. Local assembly would allow Jeep ti sidestep the hefty import tariffs that currently force its prices upward and limit sales.
Â
But talks with Guangzhou, which began in 2011, have moved forward at a deliberate pace. In January, Jeep and its parent company, Fiat, negotiated a preliminary agreement with Guangzhou to build SUVs together in China, but a dispute over the production location had held up proceedings until now. An official accord is expected to be signed sometime over the next few months.
Â
In the past, Jeep CEO Mike Manley has suggested that the new Cherokee will likely be the first Jeep to be screwed together in China. Manley believes that the Cherokee could double Jeep’s Chinese volume, which totaled 46,000 units last year.Â
Photo by Ronan Glon.
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