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German financial
magazine Wirtschafts Woche reports that 'exploratory
discussions' are going on between Fiat and China's leading
automaker Shanghai Automotive Industry Corporation (SAIC).
Fiat Group, and
Auto Division, CEO Sergio Marchionne, is believed to be
actively looking at China as a possible long term strong
growth area for Fiat, and any new deal would build on a
series of on-going joint ventures which are already bearing
fruit.
FIAT ACTIVELY
SEEKING NEW STRATEGIC PARTNERS
With
the terminating of Fiat's agreement with GM, which resulted
in a 1.55 billion euro payoff, the Italian carmaker is
urgently seeking new partners with which to develop new
cars, and Wirtschafts Woche believes that Fiat 'would
welcome' a deal with SAIC.
Fiat Group
Chairman Luca di Montezemolo, who proclaimed that the
historic carmaker was 'free to pusue its own destiny' after
the break up of the GM deal, has already signed what was
described as an "outline agreement for the development of a
long-term partnership in the commercial vehicle business in
China", back in December 2004.
Fiat Auto already has a 50-50 joint venture project in
Nanjing
with the Yuejin
Motor Group,
which produces
the Project 192 'World Car' range for the domestic market,
while a similar tie-up now sees Iveco's light commercial
vehicle range built in the Asian nation.
Italian businesses in general have been quick to exploit
opportunities becoming available in China. A high-profile
visit was made to the region late last year by Luca di
Montezemolo, in his role as boss of Confindustria, the
Italian trade body, and accompanied by the President of the
Italian Republic, Carlo Ciampi, where this proposed deal
would have been expected to be discussed. |
