After Mitt Romney’s booboo back in 2012 when he misread a report and stated that, Jeep plans to move all production from North America to China, Chrysler took no risks and made it clear in a press statement that is has reached an agreement with local partner Guangzhou Automobile Group (GAC Group) to “Produce Jeep Vehicles in China for Chinese Market”.
The deal between Fiat Group Automobiles (FGA), Chrysler Group International LLC and Guangzhou Automobile Group received the blessing of China’s government, with the joint-venture partners to begin production of three Jeep models in the country by late 2015.
“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,” said Chrysler in a statement.
While the Detroit company didn’t name the cars it will build in China, the new Renegade and Cherokee are prime candidates.
“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 the Fiat and Chrysler Groups. “Equally important is our continued development in the Chinese market with an established and respected partner such as Guangzhou Automobile Group.”
Ironically, Jeep was the first foreign brand to assemble cars in China back in 1983, but exited the manufacturing side of the business in 2006, while still under the control of Daimler.
Last year, Jeep sold more than 731,000 units worldwide, with China being it’s biggest market outside the USA with close to 60,000 vehicles and an impressive annual growth rate of 29 percent.
By John Halas
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