Chrysler to build Jeeps in China

DETROIT Wed Jan 16, 2013 1:57am IST

New Jeeps are pictured on a lot at a Chrysler/Jeep dealership in Vienna, Virginia April 26, 2012. REUTERS/Kevin Lamarque/Files

New Jeeps are pictured on a lot at a Chrysler/Jeep dealership in Vienna, Virginia April 26, 2012.

Credit: Reuters/Kevin Lamarque/Files

Stocks

   

DETROIT (Reuters) - Chrysler Group LLC said on Tuesday it has agreed to make Jeeps in China with partner Guangzhou Automobile Group Co Ltd (601238.SS), a key step toward its goal of building Jeep into a global brand.

Chrysler, majority-owned by Fiat SpA (FIA.MI), has not built Jeeps in China since before the Italian automaker took control in 2009. It currently builds all Jeep SUV models in the United States, although one Jeep is scheduled to be produced in Italy in 2014.

"We just signed a cooperation memorandum with Chrysler. We're going to expand our production capability in China," said Zeng Qinghong, vice chairman and president of GAC, on the sidelines of a press event at the Detroit auto show.

"We are going to start introducing Jeep to China and sell it in China," he said. "We are going to enhance our cooperation with Chrysler and Fiat on R&D and components purchasing and the production."

No decision has been made yet on how many Jeeps to build, he said.

Jeep sales rose 19 percent in 2012 to more than 700,000 vehicles, a record. Fiat-Chrysler is counting on building sales of brands Jeep, Alfa Romeo, Maserati and the Fiat 500 to offset losses in Europe.

"I think we have a lot of potential in China," Mike Manley, CEO of the Jeep brand, told Reuters Insider earlier on Tuesday. "For us to make real headway we have to localize our vehicles there."

Manley also said the chief executive of China joint venture Fiat-GAC, Jack Cheng, will move to a new position within the group.

"This is a planned succession," said Manley, who is also the Fiat-Chrysler executive in charge of the Asia-Pacific region.

Manley declined to identify Cheng's successor at Fiat-GAC but said a new chief executive will be announced in February.

(Additional reporting by Bernie Woodall and Yoko Kubota in Detroit; editing by Matthew Lewis)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Power Outage

Power Outage

India may face blackouts as coal shortage cuts power output  Full Article 

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Monetary Policy

Monetary Policy

BofA says RBI may cut rates by 75-100 bps starting early 2015  Full Article 

Road to IPO

Road to IPO

Mega-IPO to rekindle the 'bromance' behind Alibaba's rise  Full Article 

Automakers Haven

Automakers Haven

Tata, Volkswagen, others agree to invest $1.9 bln in India  Full Article 

Rare Earth Output

Rare Earth Output

India to chip in with 5 pct of global rare earth output  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage