FIAT INVESTMENTS IN CHINA

Fiat to pump in $2.11 billion in China operations

4 July, 2007

BY OUR AUTOMOBILE CORRESPONDENT

China is the preferred destination for many a car maker and Fiat is no different. The group is reportedly mulling over pumping in upwards of Yuan 16 billion (US$2.11 billion) in the communist nation.

The investment, which is expected to be made in the next three years, is aimed at helping Fiat post a fivefold rise in annual sales revenue in China, China Daily has reported, citing company officials.

Fiat (China) Business Co Ltd plans to invest in sectors such as passenger vehicles, trucks, engines and automotive components, vehicle finance and tractors. The Italian automotive group has invested US$1.5 billion in China since it built its first plant locally in 1986.

The company expects growth in sales revenue in China to increase from over US$1 billion in 2006 to US$5.5 billion in 2010. This includes US$3 billion for passenger vehicles, US$1.5 billion for trucks, US$600 million for engines and automotive components and US$400 million for other businesses. It also plans to make three passenger models in the coming years, namely the Linea, Grande Punto, and the Alfa Romeo 159.

Fiat, which runs a vehicle manufacturing joint venture with Nanjing Automobile Corp in China’s eastern city of Nanjing, is known for its Palio, Siena, and Perla models. It had, in the meanwhile, struck a deal with Chery Automobile to assemble the Alfa Romeo 159 in Wuhu.

A related report pointed out that Iveco, the commercial vehicle division of Fiat Group, has decided on setting up a 40,000 unit heavy truck plant and a 100,000 unit diesel engine facility in the western city of Chongqing in a joint venture with SAIC Motor and Hongyuan Motor, a local truck manufacturer. Iveco also has a partnership with Nanjing Automobile.

 

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