The new deal builds on the existing JV, which currently manufactures Fiat Viaggio and distributes imported models such as the Fiat 500, Freemont and Bravo in China.

As well as marking the introduction of locally produced Jeep models into China, the expanded agreement will see the launch of more Fiat models in the local market.

‘Following the successful launch of the first product of our JV, the Fiat Viaggio launched last September, this agreement is another milestone of our partnership with Fiat and Chrysler Group. It definitely creats the basis for our JV to reach very ambitious objectives in Chinese market,’ said Zeng Qinghong, general manager of GAC Group.

Mike Manley, chief operating officer for Asia Pacific (APAC) region, Fiat SpA, and president and CEO of Jeep Brand, Chrysler Group LLC, added: ‘2012 was a fruitful year for us. In China we've gained very positive feedback about the Fiat Viaggio. At the same time Jeep Brand set an all-time sales record both in China and worldwide, which we are proud of. The expansion of the agreement with our GAC partners will allow us to unleash the potential of  both our Fiat and Chrysler Group brands in China.’