Fiat Chrysler to invest $280 mn in India for Jeep production

Italian-American auto major Fiat Chrysler Automobiles will invest USD 280 million (over Rs 1,780 crore) in its manufacturing joint venture with Tata Motors to support production of Jeep model which is expected to roll out in the second quarter of 2017.
"Fiat Chrysler Automobiles (FCA) has announced its intent to invest approximately USD 280 million in its manufacturing joint venture, Fiat India Automobiles Pvt Ltd, with Tata Motors Ltd," the company said in a statement.
The investment in the manufacturing facility in Ranjangaon, in Maharashtra will support the production of a new Jeep vehicle and is expected to begin production in the second quarter of 2017, it added.

Commenting on the developoment, FCA CEO Sergio Marchionne said: "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."
He further 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."
Ranjangaon will be the fourth plant outside the US for volume production of Jeep vehicles. Jeep branded vehicles are also currently built in Italy and Brazil, and will begin production in China in the fourth quarter of 2015.

At present Fiat has a capacity to produce 1.35 lakh cars per annum from the plant.

The announcement was made as a delegation, led by the Maharashtra Chief Minister Devendra Fadnavis, met with Mike Manley, President and CEO - Jeep Brand, FCA - Global and COO of Asia Pacific Region, and other company representatives in the FCA North American headquarters in Auburn Hills.
Fadnavis, who is on US tour, said that the company is planning to double its production in the state to 2.45 lakh units by 2018.
Chrysler India plans to double the production to 2.45 lakh units by 2018, he tweeted.

"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," Fadnavis said.
General Motors was also keen on investing in Maharashtra for research and innovation in information technology and communication systems in vehicles, he said.
Fadnavis visited General Motors and Chrysler headquarters in Detroit today. He also addressed Maharashtra Trade Development Conference organised by Maharashtra Mandal of Detroit where he spoke on unrest-free industrial environment, business friendly atmosphere and better law and order situation in Maharashtra.

He complimented governor of Michigan Richard Snyder for the overall development of state and said "he is an inspiration".
"If Maharashtra and Michigan come together for human resource and technology, we can really do wonders for the world," Fadnavis said.