GAC Fiat Automobile Co., a 50-50 joint venture between Fiat Chrysler Automobiles and Guangzhou Automobile Group Co., broke ground last week in the south China city of Guangzhou for its second assembly plant in China.

The new plant is “an important step to achieving local production for the Jeep brand,” Guangzhou Auto said in a statement. The facility also will build Fiat models, according to the state-owned Chinese automaker.