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
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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