Chrysler close to China Jeep deal

Manley: Talks are on track.

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GENEVA — Fiat Chrysler executives say they expect to full an agreement this month for Jeep manufacturing in China.

CEO Sergio Marchionne advised reporters at the automobile present right here that approval had been delayed due to the fact of Chinese issues about the split ownership of Jeep prior to the Jan. 1 deal in which Fiat took total ownership of Jeep.

“On Jan. one, 2014, when we announced the agreement with the [UAW retirement healthcare trust] for the acquisition of the minority stake in Chrysler, these problems vanished,” Marchionne stated. “We have been hard at perform in the last 60 days putting what I take into account to be the ultimate touches on what I hope is the final agreement with our partners in China to consider to get this procedure under way.”

Fiat Chrysler will partner with Guangzhou Car Group Co. to construct a $ 771 million factory near the Chinese automaker’;s house base in the Panyu district of Guangzhou, Bloomberg reported in December. Capability would be 60,000 units per yr.

Mike Manley, head of the Jeep brand, mentioned in an interview here that the Cherokee and the smaller sized Renegade proven at the auto display would be prime candidates for Chinese manufacturing.

Building cars in China would let Jeep to keep away from import tariffs.

Manley stated negotiations are on track, but added: “Getting been concerned with China for a prolonged time, I have to say it with a little caution — not indicating that I’;ve got any concerns, but often the approach requires a little longer than you feel, at times it really is smoother.”

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