China: Fiat – Gac òaunches construction of new factory in Canton
The cornerstone was laid for a new Fiat Guangzhou Automobiles (GAC) factory, located in the district of Panyu (Canton), which will call for a total investment of approximately 4 billion RMB. The site in Canton will be devoted to building 3 Jeep models destined for the Chinese market, with production set to begin in June 2016. The plant will have an initial production capacity of 160,000 units, which could increase over 3 years to 300,000. It will employ from 1,500 to 2,000 people and utilise the most advanced technologies available to contain emissions and the environmental impact of production. With this new factory, the FIAT-GAC joint venture aims to meet the growing demand for automobiles (estimated at 20 million units for 2014 and expected to reach 28 million by 2018). It is also counting on the success that the Jeep brand can expect to have in this market, given sales of 60,000 units in 2013, up 29% compared with the previous year (around 500 million euro). In addition to the new plant, FIAT-GAC is also planning to expand and modernise plants already in operation in Chansha (Hunan).