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FCA’s New Plant in China Begins Producing Jeep Renegade

| Apr 20, 2016 10:17 PM EDT

The Jeep Renegade, a sub-compact SUV, is displayed in a showroom in Geneva in March 2015.

A new plant of Fiat Chrysler Automobiles located in Guangzhou, China, has started producing the Jeep Renegade, the second vehicle sold by the company in China without import duties, according to an article published in www. freep.com.

In a joint venture with Guangzhou Automotive Group (GAC), the FCA is making the Jeep Renegade, a subcompact SUV. Arriving later in China than most automakers, FCA made a joint venture with GAC as part of efforts to gain foothold in the world's largest automotive market.

"Today is an important step in our strategy to expand the Jeep brand's global presence and, equally important, it represents a further strengthening of the joint enterprise with our respected and valuable partner here in China, the GAC Group," FCA CEO Sergio Marchionne said in a statement.

FCA's global expansion is reflected in the Jeep Renegade's production where it's now currently produced in three factories in three countries, namely, China, Brazil and Italy.

In 2015, more than 1.2 million Jeep SUVs were sold by Jeep around the world, a 22-percent increase compared with 2014 and the brand's fourth consecutive record year.

According to the report, FCA will sell the Jeeps it builds in Guangzhou to Chinese consumers.

Last year, FCA began building the Renegade at its plant in Melfi, Italy, as well as in its new plant in Brazil.

FCA began building the Jeep Cherokee in Changsha last fall, while GAC Fiat Chrysler Automobiles is producing the Renegade at a new plant in Guangzhou, which has the capacity to build 160,000 vehicles a year.

"GAC FCA stands for an excellent joint effort among China, the U.S. and Italy," Zhang Fangyou, chairman of Guangzhou Automobile Industry Group, said in a statement. "Without a doubt it will further accelerate the development of not only GAC Group, but also the whole automotive industry here in Guangdong Province, China."

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