Jeep and Guangzhou Collaborate for Chinese Market

Chrysler recently announced that three Jeep models will be manufactured in China by the end of 2015. The announcement marks the return of Jeep to China where the vehicles were manufactured from 1983 to 2006. Jeep was the first foreign automaker to assemble vehicles in China but stopped after the sale of Chrysler. Despite the near decade-long absence Jeep maintains a high level of name recognition in China.

The deal with Guangzhou Automobile gives Jeep a leg up on the competition in the ever-expanding Chinese SUV market. The Chinese SUV market is expected to outpace overall industry growth over the next half decade. Automakers have been lining up to collect their slice of the pie with Ford, GM, Volkswagen, and Mercedes-Benz unveiling SUVs they plan to sell in China.

Jeep's deal with Guangzhou Automobile designates three Jeep SUV models to be built in China and sold to Chinese buyers. Jeep hasn't made any official announcement but the Cherokee and all-new subcompact Renegade seem "ideally suited" for China according to Jeep CEO Mike Manley.

The Jeep Renegade is the first product of the new Chrysler/Fiat partnership. The Renegade will be manufactured in Italy and share a platform with the upcoming Fiat 500X. The Renegade essentially replaces the Jeep Compass and Liberty models. The new subcompact SUV is expected to carry a starting price tag of under $20,000. The 2015 Renegade is Jeep's first entry into the small SUV market and has been described as "designed in America and crafted in Italy."

The unveiling of the subcompact Renegade, coupled with the Guangzhou deal, has Jeep poised to take advantage of China's expanding SUV market.