Fiat and Chrysler boss Sergio Marchionne is reportedly finalizing a deal with local partner Guangzhou Automobile Group to assemble the Jeep Cherokee SUV in China. According to insiders quoted by Bloomberg , the SUV could arrive in Chinese dealerships as early as 2015.
Fiat is considering assembling the Cherokee at its existing plant in the country rather than build a new facility for it – that would also help it fill unused capacity as the Viaggio sedan it manufactures in China is forecast to miss sales targets for 2013 and 2014 by more than 60 percent.
Viaggio sales are reportedly affected by the model’s lack of visibility on the market. The compact sedan debuted on the Chinese market in September 2012. Although Fiat targeted production of 100,000 Viaggios this year and as much as 200,000 next year, analysts estimate sales of only 40,000 units this year and 54,000 units in 2014. The Dodge Dart-based Fiat Viaggio was made specifically for China and competes in the market’s biggest segment.
Both the Viaggio and the new Cherokee use the same underpinnings as the Alfa Romeo Giulietta, so building them in the same plant would make economic sense for Fiat. The Cherokee, which is called the “Zi You Guang” in China (“Liberty Light”), would also be exempted from the 25 percent import duties. Jeep is more recognizable than Fiat in China because in the 1980s, it was the first western badge built in the country. No Jeep vehicles are currently made in China after the plant shifted to Mercedes-Benz vehicles about 10 years ago during DaimlerChrysler’s ownership of the Jeep brand.
Fiat and Chrysler declined to comment on production plans for China.
By Dan Mihalascu
