FCA’s New Brazil Plant to Build Jeep Renegade

TURIN – The all-new Jeep Renegade will be the first model to be produced by Fiat Chrysler Automobiles at its new plant under construction in Goiana, Pernambuco, Brazil.

The new highly integrated complex includes a Tier 1 supplier park, training center, R&D operations and test track.

Job One is expected by year’s end and initial 2-shift capacity is planned at 250,000 units per year.

The plant is said to be highly flexible, and other models will join the Renegade in production there for both the domestic and international market.

In addition to the Brazilian plant, the Renegade, unveiled at the Geneva auto show in March, is entering production at FCA’s Melfi, Italy, facility and there is a possibility it also will be built in China.

Announcement of a final agreement to build Jeep vehicles at a new plant in China with partner Guangzhou Automobile Group could come at the Beijing auto show, opening to the media April 20, or at FCA’s board meeting May 6 in Detroit.

FCA received considerable support from the State of Pernambuco in setting up the Goiana plant. The state made roughly 1,100 acres (445 ha) of land available for the site and has financed 85% of the €2.3 billion ($3.2 billion) investment, according to Italian newspaper Corriere della Sera, partially owned by Fiat.

It is unclear whether the state money is a loan or something FCA will not be required to pay back.

The new plant will complement FCA’s huge Betim complex in the state of Minas Gerais, and it will further consolidate Fiat’s position in Brazil. The Betim plant is Fiat's largest production operation worldwide, with its capacity due to grow further, from the current 800,000 units to 950,000 per year.

Fiat has been the Brazilian market leader for 12 straight years, with a share close to 25%.