Fiat teams up with Chery in China
08 August 2007
Fiat will manufacture its Alfa Romeo 159 for the Chinese market in a joint venture collaboration with Chery Automobiles of China. Chery, based in the eastern city of Wuhu, currently sells 10 models under its own badge and is one of China's largest car exporters.
The two companies announced having signed an agreement to produce 175,000 Fiat and Alfa Romeo cars per year in China from 2009 onwards, without disclosing any financial details.
Fiat SpA Chief Executive Sergio Marchionne, said the move was part of a larger strategy to expand Alfa Romeo worldwide. "The introduction of Alfa Romeo in China represents an historical step, launching one of the most attractive brands of the European car industry into the world's fastest-growing automotive market," Marchionne said in a statement.
SpA, of which Fiat Group Autos is a subsidiary, currently
has six joint ventures and nine wholly foreign owned
enterprises in China engaged in manufacturing and distribution
of cars, commercial vehicles, agricultural and construction
equipment and auto components.
The news comes a day after Fiat said it would source 100,000 1.6- and 1.8-liter engines a year from Chery to power cars manufactured by Fiat in China and abroad.
has been struggling to turn around its operations in
China. Its operation with Nanjing Automobile Corp remains
has been making losses with sales at the end of June
at 31,000 against the targeted sales of 300,000 vehicles
in China by 2010.