Fiat Chrysler Automobiles began producing the Jeep Renegade in China on Monday, giving the brand a second vehicle that it can sell in the world's largest automotive market without import duties.
The Renegade, a subcompact SUV, is being made through a joint venture with Guangzhou Automotive Group. Fiat Chrysler arrived in China later than most automakers, making its joint venture with GAC the centerpiece of its effort to gain ground in what has become 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," Fiat Chrysler CEO Sergio Marchionne said in a statement.
The Jeep Renegade is now produced in three factories in three countries — Brazil, China and Italy — and reflects the brand's global expansion. Jeep sold more than 1.2 million Jeep SUVs around the world in 2015, a 22% increase compared with 2014 and the brand's fourth consecutive record year.
Fiat Chrysler plans to sell the Jeeps it builds in China to in China. The company began building the Renegade at a Fiat plant in Melfi, Italy last year and also began producing the Renegade at a new plant in Brazil.
It began building the Jeep Cherokee last fall in Changsha, China. GAC Fiat Chrysler Automobiles is producing the Renegade at a new plant in Guangzhou, China. The new plant has the capacity to build 160,000 vehicles a year.
