Output scheduled to begin during the second quarter of 2017.

Fiat Chrysler Automobiles (FCA) announced yesterday (1 July) that it would invest USD280 million in India to expand the Jeep production footprint, reports Reuters News. The investment will go to the company's regional joint-venture (JV), Fiat India Automobiles, which operates through Tata Motors in the country. Production of the Jeep will take place at a manufacturing facility in Ranjangoan, with output scheduled to begin during the second quarter of 2017. The report suggests that production of "a new Jeep vehicle" will begin at the plant but it does not identify the product. Sergio Marchionne, FCA CEO, said, "Today marks an important step as we continue to expand the availability of Jeep products around the world. Earlier this year, we indicated that 2015 would be a transformational year in the globalisation of the brand and this announcement reinforces that commitment. Establishing Jeep production in India will give us the opportunity to offer even more people the chance to experience the freedom and adventure that can come from behind the wheel of a Jeep vehicle." The announcement was made at FCA's US headquarters, with Indian political leaders in attendance, including the State of Maharashtra's chief minister.

Significance: Fiat currently manufactures the Punto and Linea models at the Ranjangoan plant in India, alongside Tata's Zest, Bolt, and Indiga Manza. The plant largely caters to local demand, while it also supplies smaller markets, albeit in limited volumes. The launch of the Jeep brand in India has long been anticipated. IHS Automotive forecasts that the new Jeep plant will build a new C-segment sport utility vehicle, which will functionally replace the current Patriot and Compass. In terms of size, it will slot in between the Renegade and the Cherokee. Tata Motors is part of the JV operating the plant, with overall output at the facility projected to exceed 76,000 units this year. The Jeep product's role is to increase Jeep's international presence, but it is not forecast to be a primary product for the plant.

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