Fiat Chrysler confirms USD 280 million investment in Ranjagaon for Jeep production
News of Fiat Chrysler Automobiles Group investing to expand its Ranjangaon plant in Maharashtra to accommodate production of Jeep emerged already and now the company’s chairman Sergio Marchionne confirmed it.
The plant which is co-owned by Tata Motors will see investment in the tune of USD 280 million (around INR 1,800 cr) from FCA. The Indian automaker is also expected to contribute to the expansion plan (net value of INR 3,000 cr is expected) since it is reportedly planning to make its upcoming Q501/Q502 premium SUVs at the site.
Apart from establishing new assembly facility, FCA and Tata are also said to be extending their engine supply partnership which will see the latter sourcing 2.0-litre MultiJet diesel engine from the former for the upcoming SUV duo.
Coming back to Jeep India, the SUV brand was confirmed to hit the market sometime later this year with Grand Cherokee and Wrangler models. These models will initially be brought down as CBUs. The assembly operations would commence in second quarter of 2017.
The investment in Indian plant is a part of FCA’s plans to double Jeep’s sales of 1 million (in 2014) by 2018. India which is poised to become the world’s third largest auto market by 2020 is a destination which the American brand can’t afford to stay away from, especially considering the market’s affinity towards SUVs. In fact, a new C-Segment Jeep SUV is reported to be manufactured in India.
Via – EconomicTimes.com