Iconic Cherokee makes its return to Chinese market

Guangzhou Automobile Group and Fiat Chrysler Automobiles hold a grand ceremony to kick off their joint venture. [Photo/China Daily]

Joint venture to introduce four Jeep models by 2017 as sales surge in China?

The iconic Jeep Cherokee is changing gears and will once again be produced domestically this year after Guangzhou Automobile Group and Fiat Chrysler Automobiles announced on Thursday that they have partnered to establish GAC Fiat Chrysler Automobiles Sales Co.

In addition to the Cherokee, the joint venture will also introduce two new Jeep models for Chinese customers by 2016 and one more model tailored for the Chinese market the following year. The new sales company will be headquartered in Shanghai.

By 2020, a total of 10 products will be launched by the joint venture in China, covering a range of markets, from compact sport utility vehicles to full-size ones. The Chinese market is expected to boost Jeep's plan of reaching 7 million units in global sales by 2018.

Jeep President and CEO of the Asia-Pacific region Mike Manley said Jeep's sales grew by almost 50 percent in the Chinese market last year.

"The Chinese market is growing to be the number one Jeep market outside the United States. As one of the earliest international carmakers producing vehicles in China, we will once again be producing Jeep vehicles in China and for China," he said.

Jeep and BAIC Motor Corp formed China's first auto joint venture in 1983, and the locally made Cherokee rolled of the line in 1985.

After Daimler-Benz purchased Chrysler in 1998, the joint venture developed into Beijing Benz Daimler Chrysler Automotive Co in 2005.

That same year, Beijing Benz Automotive Co was founded. Three years later, Daimler dumped Chrysler.

Fiat has been in partnership with GAC since 2010 and offers imported Fiat. The joint venture's Fiat Viaggio, the Chinese version of the Dodge Dart, is produced in Changsha, capital of Hunan province.

John Kett, general manager of Fiat Chrysler APAC, said in November last year that "China is a market of strategic importance to FCA in the next five years."

"The joint venture plan will accelerate our volume and market share growth at significant speed, and will enable us to deliver the commitment that we laid out by growing our sales volume in China to 760,000 (units) by 2018," he said.

Fiat Chrysler Automobiles, the world's seventh-largest automaker, was established in 2014 after Fiat acquired all of Chrysler Group.

Chrysler is looking to produce its lineup of sedans in China. GAC FCA's two plants in Guangzhou and Hunan province will have a total of 700,000-unit planned production capacity by 2020.

Feng Xingya, chairman of GAC Fiat Chrysler Automobiles Co, said the new sales company will come equipped with high-performing dealers from the almost 400 dealerships using Fiat and Chrysler's existing networks in China.

The dealership companies will not be isolated for Fiat or Chysler brand, but for all the FCA brands.