Chrysler says no Jeep deal signed in China

Aug. 26, 2009 (China Knowledge) - Chrysler Group LLC, the U.S.-based auto giant, has not agreed to produce Jeeps in China with Guangzhou Automobile Industry Group Co Ltd, a company spokesman said on Tuesday, Reuters reported.

Local media recently reported that Chrysler had formed a partnership with Fiat SpA's Chinese partner, Guangzhou Auto, to set up a joint venture to produce Jeeps in Changsha, the capital of Hunan Province, and that the JV would start the production and sale of Fiat and Chrysler cars by the second half of 2011.

The spokesman denied the report, and said no such deal was signed.

Earlier this year, Fiat acquired the troubled Chrysler. The Italian auto maker signed a deal with Guangzhou Auto to set up a JV in Changsha. The new JV will initially be able to produce 140,000 cars and 220,000 engines each year and will ultimately be able to produce 250,000 cars and 300,000 engines annually.