Italian automobile firm Fiat Chrysler Automobiles recently made an announcement regarding its investment of US $280 million for a joint venture. This JV is going to take place between Fiat India Automobiles Private Limited and Tata Motors Limited. Also, the investment is going to take place in the production facility located in Ranjangaon, which is in the state of Maharashtra. It will be supporting the manufacturing of the Jeep brand and the process will begin in the year 2017.
Sergio Marchionne, Chief Executive Officer of FCA, spoke about this venture. "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 globalization 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.”
Adding further, he said, "We are pleased that this investment will strengthen FCA presence in India and are confident in the ability of the joint venture to produce world class products like those carrying the legendary Jeep nameplate.”
This announcement came after a meeting between Mike Manley, President and Chief Executive Officer of Jeep, and Devendra Fadnavis - the Chief Minister of Maharashtra. Other company executives were also present at the meeting.
Devendra Fadnavis, speaking on this development, said, “The association of Fiat with Maharashtra is not new and dates back many decades. We welcome Fiat Chrysler's decision to invest in the state of Maharashtra and reaffirm the Government's interest in expanding the relationship with Fiat Chrysler by fully supporting this new initiative."
The year 2014 saw sales for Jeep brand trump the one million unit mark and it managed to achieve the feat for a third consecutive year. One of the aims of this investment is the fact that Ranjangaon production facility will aim to popularize manufacturing of Jeep models. At present, cars from this brand are being produced in Italy and Brazil while China will see commencement towards the end of 2015.
