GUANGZHOU - GAC Fiat Chrysler Automobiles Co started operation of its assembly plant in the southern Chinese city of Guangzhou on Monday.

This is the second production base of GAC Fiat Chrysler Automobiles, a 50-50 joint venture between Guangzhou Automobile Group Co and Fiat Chrysler, in China.

The plant, located in the Panyu district of Guangzhou, has a production capacity of 160,000 vehicles and can generate an industrial output of 28.2 billion yuan ($4.4 billion) a year.

Zhang Fangyou, chairman of GAC, said the new plant was a product of the economic cooperation between China, the United States and Italy.

The plant can promote exchanges and cooperation in terms of capital, personnel and technology between GAC and Fiat Chrysler, said Zhang.