Guangqi Fiat will not produce Chrysler vehicles in China, the Beijing Youth Daily reported. "[We] are currently not considering domestic manufacture of Chrysler vehicles, [and] likewise there has been no change to our production capacity," a spokesman for the joint venture said.

The official statement came in response to Chrysler's international operations Mike Manley saying that the American manufacturer was researching the possibility of producing vehicles in the country, Gasgoo.com reported.

Media has speculated Chrysler is preparing to cooperate with joint venture Guangqi Fiat.

Guangqi Fiat reportedly is preparing to sell the new C-Medium car next summer. The model is specially targeted at China.