Fiat is currently involved in China in a joint venture with the Nanjing Automobile Group, which manufacturers the Siena, Palio and Perla (above) compact cars.

Fiat Group Automobiles has appointed Paolo Arpellino to replace Andrew Humberstone as chief representative officer of its Chinese operations, Italy's biggest car maker said last Friday. Arpellino, a 45-year-old Italian, will be in charge of business development in China as well as daily operations, and will oversee investments and product launches the company is planning, Fiat Group China said in a statement.

Arpellino had been working for FGA International Business Development since 2005, and was responsible for all the main international alliances and negotiations of FGA Auto around the world, including China. Humberstone has become managing director of FGA's UK subsidiary.

Arpellino joined Fiat to help streamline its partnership in China and gear up development to fulfil a target to sell 300,000 units in the world's second largest auto market by 2010.

Fiat is involved in a joint venture with the Nanjing Automobile Group, making Siena, Palio and Perla compact cars. But Nanjing Fiat has been losing money because of a lack of new models. Frequent personnel changes have also been blamed for a lack of sales. Last year, the venture sold around 30,300 cars compared with the 400,000 sold by General Motors Corp in China. Fiat had threatened to quit the partnership, saying the Chinese company was focusing too much on developing its own models, according to Sergio Marchionne, Fiat's chief executive officer.

Fiat is expanding its partnership with China's Chery Automobile Co Ltd and Shanghai Automotive Industry Corp to increase competitiveness. In August, Fiat formed a 175,000-unit production venture with Chery to make mid-market Alfa Romeo models after purchasing engines from the Chinese counterpart. Fiat plans to introduce new models into China and will begin importing the Grande Punto, Bravo and Linea by the end of this year before producing the Grand Punto and Linea locally at the end of next year.

Source: Shanghai Daily