Brent Snavely

Detroit Free Press

Fiat Chrysler Automobiles began producing the Jeep Renegade in China on Monday, giving the brand a second vehicle that it can sell in the world's largest automotive market without import duties.

FCA is making the Renegade, a subcompact SUV, through a joint venture with Guangzhou Automotive Group. FCA arrived in China later than most automakers, making its joint venture with GAC the centerpiece of its effort to gain ground in what has become the world's largest automotive market.

“Today is an important step in our strategy to expand the Jeep brand’s global presence and, equally important, it represents a further strengthening of the joint enterprise with our respected and valuable partner here in China, the GAC Group," FCA CEO Sergio Marchionne said in a statement.

The Jeep Renegade is now produced in three factories in three countries — Brazil, China and Italy — and reflects the brand's global expansion. Jeep sold more than 1.2 million Jeep SUVs around the world in 2015, a 22% increase compared with 2014 and the brand's fourth consecutive record year.

FCA plans to sell the Jeeps it builds in China to in China. FCA began building the Renegade at a Fiat plant in Melfi, Italy last yar and also began producing the Renegade at a new plant in Brazil.

FCA began building the Jeep Cherokee last fall in Changsha, China. GAC Fiat Chrysler Automobiles is producing the Renegade at a new plant in Guangzhou, China. FCA said the new plant has the capacity to build 160,000 vehicles a year.

“GAC FCA stands for an excellent joint effort amongst China, the U.S. and Italy," Zhang Fangyou, chairman of Guangzhou Automobile Industry Group said in a statement. "Without a doubt it will further accelerate the development of not only GAC Group, but also the whole automotive industry here in Guangdong Province, China.”

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.