Production synergy

"The Chinese market demands cannot be met by the Changsha plant alone. Considering Guangzhou has a strong demand in Jeeps, we established the second plant in Guangzhou," said GAC Fiat's Chairman of the Board Feng Xingya.

"Guangzhou has a very mature parts supply system, which has been serving GAC's joint ventures for years," Feng added.

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"GAC will share the existing parts supplies, logistics, research and development with the new plant, and realize the synergy between the Chinese brand and the joint venture brands," said Zeng Qinghong.

The GAC Group established the Guangzhou Automobile Group Component Co (GACC) in 2000, and provides parts directly to Guangzhou Honda, Guangzhou Toyota and other vehicle manufactures.

The new Guangzhou plant is close to the GAC Group's manufacturing bases, so that all local supplies may help reduce costs, according to Wang Qiujing, GAC Fiat's executive deputy general manager.

The joint venture will also bring in the experience of producing and managing from the first plant in Changsha, Hunan province, according to John Burton.

Jeep's localization

GAC-Fiat's two manufacturing bases in Guangdong and Hubei provinces will help double its production volume by 2018 and meet the company's five-year plan, as they will produce both Fiat and Jeep automobiles, said Fiat Chrysler Group's Asia Pacific Senior Vice-president Franco Amadel.

The first two products set to be produced at the new plant will be the newest global models under development on Fiat Chrysler's universal platform.

"After the products flowing from the new world-class manufacturer, we hope to see the Chinese market become the first largest market for Jeep," said Burton.