Jeep May Begin Building Cherokee in China in 2014

Chrysler Group LLC might start production of the Jeep Cherokee midsize SUV at a plant in Changsha, China, by the end of next year, says the brand's CEO Mike Manley.

In January Chrysler and parent Fiat SpA reached an agreement with Fiat's Chinese partner Guangzhou Auto Group to make the brand's SUVs at their joint venture. The deal awaits government approval, which Manley tells reporters he expects by mid-2014.

The new Cherokee is the obvious choice to become the first Jeep model to be made in China in five years, according to Manley. He says the marque has a premium image among consumers there. SUVs and luxury vehicles are among the country's fastest-growing segments.

Jeep already has a high profile in China, where its vehicles were assembled from 1985-2009 at Chrysler's Beijing Jeep joint venture. The make sold 46,000 imported SUVs in the country last year. Manley says Jeep could double its volume there with a locally made Cherokee.

That model is scheduled to arrive in U.S. showrooms in the third quarter of this year and in China by year-end. Jeep aims to expand its distribution network in the country by one-third to more than 200 dealerships by year-end.