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GAC-Fiat starts construction of new plant in Guangzhou

GUANGZHOU – GAC-Fiat, a 50:50 joint venture between China’s Guangzhou Automobile Group Co. (GAC) and the Italian automaker Fiat, broke ground for its new manufacturing plant in Guangzhou on June 18.

The plant is estimated to be completed in June 2016, with a total investment of ¥4.23 billion ($677.22 million) and a planned capacity of 160,000 vehicles per year.

Two Jeep models including a B-SUV (the Renegade) and C-SUV (the Compass or Patriot) are likely to be manufactured at the Guangzhou plant, according to a report on

The JV’s new Guangzhou plant and the plant of GAC Motor, a passenger vehicle subsidiary of GAC, will share power facilities, logistics equipment and auto parts sources.

GAC-Fiat’s plant in Changsha, which is capable of producing 140,000 vehicles in the first phase and 250,000 in the second, is also likely to assemble a Jeep model, the Cherokee, according to earlier local media reports.

Fiat Chrysler Automobiles (FCA) sold 60,000 Jeep models in China last year, up 29 percent. China remains Jeep’s second largest market, following the U.S.

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