The Jeep Cherokee Urbane, one of four concept vehicles the maker is showing in Beijing.
Beijing Auto Show-goers will get a look at four new Jeep concept vehicles this week, vehicles the maker said are “uniquely designed for China,” the world’s largest automotive market.
But perhaps more significant is the news that parent Fiat Chrysler Automobiles has finally locked down a long-sought joint venture that will allow it to begin producing Jeeps in China for the first time in nearly a decade. The SUV brand was the first foreign maker into China but lost that Beijing production base after the break-up of DaimlerChrysler AG.
The tie-up with China’s Guangzhou Automobile Group is a critical step for Jeep which has been pushing to expand its presence abroad in recent years. The maker sold 731,000 vehicles worldwide in 2013 and brand CEO Michael Manley recently announced a target of 1 million for 2014, well ahead of earlier plans.
The Jeep Wrangler Sundancer.
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China would be a critical part of the process. The country is already the largest Jeep market outside the U.S., accounting for 60,000 sales in 2013. But the maker expects that would increase substantially with the advent of local production since that would eliminate the hefty import tariffs currently levied on American-made vehicles.
Fiat Chrysler CEO Sergio Marchionne has been hinting of a deal with a Chinese partner for more than a year but the deal has repeatedly been delayed.
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The news that the partnership is finally locked down will likely mean a major “expansion on a global scale of the Jeep brand,” declared Marchionne. Specific details, however, have not been announced.
In the heavily regulated Chinese market, foreign automakers are required to partner with local manufacturers to produce vehicles.
Fiat Chrysler currently has a smaller joint venture tying it to Guangzhou. It produces the Fiat Viaggio model.
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The Jeep Cherokee Sageland.
As for the concepts that will be displayed at the Beijing Auto Show this week, they include:
- The Jeep Zi You Xia, a “sophisticated” interpretation of the new Renegade compact utility vehicle that was first unveiled at the Geneva Motor Show in March;
- Jeep Cherokee Sageland and Urbane Concepts, two models that “demonstrate how the reach of the Cherokee could expand in new directions; and the
- Jeep Wrangler Sundancer Design Concept, which the maker suggests is meant to enhance the traditional capabilities of the rugged off-roader by adding a “touch of sophistication,” and a “sense of fashion.”
The timing of the Jeep news could be significant. Until recently, SUVs were not a major factor in the booming Chinese market, but they have rapidly gained momentum over the last several years.
(Click Here to check out TheDetroitBureau.com’s complete NY Auto Show coverage.)