DETROIT--Italy's Fiat SpA (F.MI) is set to sign a new contract
with Guangzhou Automobile Group Co. Ltd. (22238.HK, GNZUF) to
produce Jeep vehicles for China, one of several markets harboring
strong demand for sport-utility vehicles, the Italian daily
Corriere della Sera reports Sunday, without citing any sources.
Guangzhou, which already makes cars for the Fiat brand, would
use one of its plants for the Jeep vehicles, which would be for the
domestic market and not for export, the daily reports, adding that
the models to be made hadn't been defined.
The contract wouldn't impede on any of Jeep's operations in the
U.S., it says.
Fiat and Chrysler declined to comment on the report ahead of the
motor show in Detroit this week.
Jeep, which belongs to Fiat's U.S. partner, Chrysler Group LLC,
has embarked on an expansion drive to meet demand for SUVs in
emerging markets such as China.
Russia is another market, where Fiat has entered into an
agreement with Russian state bank OAO Sberbank (SBER.RS) to build
Jeep models.
Jeep and Fiat's Alfa Romeo are the two brands identified by Fiat
and Chrysler to have global potential.
In 2012, Jeep sold a record 701,626 units, up 19% from the prior
year, thanks to a near doubling of sales in Asia.
First launched in China in 1983, Jeep aims to increase the
number of dealers in the country to about 200 from 150 by the end
of 2013.
It sells three models in China: the Grand Cherokee, Wrangler and
Compass. All of them are imported.
Newspaper website: www.corriere.it
Write to Gilles Castonguay at gilles.castonguay@dowjones.com;
Twitter: @GRCastonguay
(Giovanni Legorano in Milan and Christian Rogers in Detroit
contributed to this article.)