Fiat revs up plans to build Jeep in China
As SUV sales roar despite gridlock and rising fuel costs, carmaker in talks to revive production of vehicle in world's biggest car market
Fiat, majority owner of the Chrysler Group, plans to start making Jeeps in China again and might eventually make all of its models in the country, according to the head of both carmakers' operations in the region.
Mike Manley, chief operating officer of Fiat and Chrysler in Asia, said Fiat was in "very detailed conversations" with its Chinese partner, Guangzhou Automobile Group, on making Jeeps in the world's biggest car market.
Chrysler has not built Jeeps in China since Fiat took control in 2009.
"The volume opportunity for us is very significant," said Manley, who is also president of the Jeep brand. "We're reviewing the opportunities within the existing capacity" as well as whether the company "should localise the entire Jeep portfolio or some of the Jeep portfolio", he said.
Jia Xinguang, chief analyst at China Auto Consultancy Group, said Fiat and Chrysler would consider moving some of Jeep's production to China because the SUV was popular in that market.
Jia said that although car sales had slowed on the mainland in recent years, demand for SUVs was still strong.
"Last year, total car sales in the country grew 2.45 per cent but the SUV segment grew 20.2 per cent," he said.
