[mr.smith]

Fiat and Jeep will begin to build cars in the Chinese city of Changsha after long negotiations. The local assembly of Jeep vehicles will side-step heavy import tariffs which have been causing Jeep to raise prices on its products, and higher prices mean less sales.

negotiations started in 2011 were going well, but they then got hung up over a dispute as to where the production location should be.

The Cherokee will likely be the first car that this new Jeep plant produces, and jeep CEO Mike Manley is hopeful that this new plant can help Jeep double its Chinese sales from 46,000 units last year to 92,000 this year.

Everything is about China these days! Glad to see that jeep is not getting left behind.

 

[Hawkman]

China is where it's at! Jeeps don't really strike me as the type of vehicle that would be popular in China though. i see them more in luxury segments and compact segments. I don't really have any hard numbers to back this up, but i just don't see the Chinese as wanting larger SUVs. Some will buy it, but most are looking for something different.

 

[Jeepers]

Way to jump on the China bandwagon Jeep. Go where the money is.

 

[barnettd]

I bet it does well.

 

[jimmy]

they did intend on making this a world vehicle after all, so setting up an operation in China was expected. Remember this is Fiat running things now!
if they don't follow the world vehicle bandwagon they'll just get left behind, there's never been a great time than now to build world vehicles.

 

[Hawkman]

If Fiat owns Jeep, why was there such a delay in negotiations to get this plant up and running. Is there still need for negotiations even when you own the company you are negotiating with? Or, maybe they were negotiating with the Chinese government?

 

[Bronco B.]

The China market is taking over the auto industry. No matter how you look at it every one is going over there to make money including our Amercian car companies. I would have thought they would want the Grand Cherokee over there.

 

[DC0]

The China market is taking over the auto industry. No matter how you look at it every one is going over there to make money including our Amercian car companies. I would have thought they would want the Grand Cherokee over there.

they're starting small with vehicles. the small vehicle demand is so strong that some companies are making long wheel base models of small cars just for china, meanwhile other nations get the regular wheel base

 

[brianch]

for the chinese market or for the north american market?

 

[Cherokee Steve]

for the chinese market or for the north american market?

Our builds come out of Toledo OH currently, I believe. The article is discussing for the Chinese market.

 

[develmann]

they're starting small with vehicles. the small vehicle demand is so strong that some companies are making long wheel base models of small cars just for china, meanwhile other nations get the regular wheel base

I seem to recall they were discussing an upcoming compact crossover that was around the size of a Ford Fiesta. While Jeep is going to sell it in other countries, China will be a big target for this as well.

http://www.autoguide.com/auto-news/2013/07/jeep-sub-compact-crossover-coming-in-2014.html

 

[brianch]

Our builds come out of Toledo OH currently, I believe. The article is discussing for the Chinese market.

Ahh good for them.

 

[jimmy]

Our builds come out of Toledo OH currently, I believe. The article is discussing for the Chinese market.

Yup, there's just too much of a demand for these here to have them built in a plant in china, then shipped here.

It will be interesting to see how well the build quality is of Cherokee's coming out of both plants