Fiat in joint venture in China
Fiat has signed an agreement with China's Guangzhou Automobile Industry Group to produce cars and engines in China from the second half of 2011, with it being an equal partnership. The total investment will be around $560 million.
The plant would target a production of 140,000 cars a year and around 220,000 vehicles after the first phase of development. Fiat has signed other agreements in seven deals worth $225 million with other Chinese companies.
Fiat was looking for a strong partner in China for a long time and decided to go ahead with these deals. The company said that the plant would be built in Changsha, state capital of Hunan. The plant would be supported by loans from the Chinese government. Ford is looking for other places because the traditional markets are down whereas Chinese auto sales are on the rise.
[Via: globalmotors]