Chrysler could start making Jeep models in China by the end of next year with the Cherokee the “obvious choice”, according Mike Manley, CEO of the brand.
The new Cherokee goes on sale in China towards the end of this year and Manley said at the Shanghai show the model would be a good choice for production in the country because of the growth in the SUV market.
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He added that it could be made at the new plant owned by the 50/50 joint venture between Fiat, Chrysler and Guangzhou Automobile in Changsha, capital of the Hunan province.
John Burton, head of GAC-Fiat, said he was confident that the Chinese side of the venture would approve expansion of the JV to include Jeep.
Manley told Reuters there were no plans to produce a Jeep model exclusively for China which is now the brand’s second-biggest market, behind the US.
He added: “We would like to localise Jeep in China, but it wouldn’t be a specific vehicle.”
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By GlobalDataJeep commands luxury vehicle prices in China although its engines put the model in the higher tax bracket. Local production would overcome heavy import duties.
Last year, Jeep sales rose 107% to around 46,000, making the brand a niche player in the burgeoning Chinese market. The fastest-growing segment is SUVs which now account for about 15% of the market, a figure expected to grow to between 20 and 25% by the end of 2015. In the first quarter of this year, SUV sales in China rose 10%.
