(Reuters) - Fiat Chrysler Automobiles NV (FCHA.MI) and China's Guangzhou Automobile Industry Group Co [GZGVTD.UL] said they would deepen their alliance through a joint sales, marketing and product organization to push Jeep, Fiat and Chrysler brands in China.
In April, Guangzhou Automobile Group said it had struck a deal with Fiat Chrysler to produce a raft of Jeep sports utility vehicles developed for Chinese customers.
GAC Fiat will make three new Jeep models by the end of 2016.
The companies said on Thursday they would now establish a joint commercial operation in China which is responsible for all product planning, after-sales, marketing and sales of Jeep, Fiat and Chrysler brands.
The new organization allows GAC "to collaborate with leading auto brands from Europe and the United States, to advance our globalization process," GAC Chairman Zhang Fangyou said.
John Kett, General Manager of Fiat Chrysler Asia Pacific said the agreement would allow Fiat Chrysler to grow sales volume in China to 760,000 by 2018.
Fiat Chrysler sold 130,000 cars in China last year, compared with just over 3 million vehicles each for Volkswagen and GM.
In addition, the companies said the preliminary agreement includes the separation of commercial and industrial activities.