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Fiat relaunched a much slimmed down dealer
network in China during late August when it
started importing three new models, the
Grande Punto, Linea and Bravo. |
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Fiat has
presented three different requests to restart
manufacturing in China, the Beijing-based Jinghua
newspaper reported this morning. The submissions have
been made to China's main economic planning body and
they cover joint ventures with Chery Automobile Co,
Gunangzhou Automobile Group and Chongqing Changan Suzuki
Co. Jinghua reported the news this morning, quoting an
unnamed source within Fiat.
Ever since the
plug was finally pulled on Fiat's ill-fated joint venture
project in China with Nanjing Auto last summer, the Italian
company has been searching around to find a new partner as
it attempts to make up the ground lost to its rivals in this
swiftly growing market. Plans to build Fiat and Alfa Romeo
models, starting with the Alfa 159, were hatched with Chery
Automobile in the summer of last year although the project,
which will use Chery's own engines, soon hit stumbling
blocks as the partners had differing strategies.
Meanwhile in
August it was revealed that ambitious Chinese player
Guangzhou Automobile Group Co had entered into talks with
Fiat to purchase the redundant Fiat Palio/Siena/Perla
production lines from the now deceased Nanjing Fiat project,
with these initial talks quickly extending to the possible
supply of several redundant European production lines.
Guangzhou Automobile Group wants to use Fiat technology to
underpin its plans to develop a much wider own-brand range.
Both sides confirmed these talks at the beginning of last
month and discussions are believed to have then quickly
expanded to encompass a full joint venture between the two
firms.
Jinghua, quoting
its Fiat source, said that it expects the Chery Automobile
Co and Guangzhou Automobile Group Co joint ventures to be
approved by the Chinese authorities as early as next month
as Fiat slashes its original 300,000 units per year sales
target in China by 2010, to a new target of 50,000 units.
Meanwhile as
Fiat seeks to recover lost ground in China it wants to enter
into a contract manufacturing arrangement with Chongqing
Changan Suzuki Co, a joint venture between Changan Motors
and Suzuki; the contract will be to produce the Fiat Sedici
model for the local market. Suzuki already builds the Sedici
crossover model in Hungary for Fiat to sell in the European
markets, and the Suzuki SX4, on which the Sedici is based,
is already built in China making assembling the Fiat version
of the model locally a relatively simple exercise to
undertake.
Following the
ending of the struggling Nanjing Fiat joint venture last
year, Fiat relaunched a much slimmed down dealer network
across China during late August, with less than 30 of the
original 100 outlets still remaining. The new sales network
has started off by importing three new models, the Grande
Punto and Bravo from Italy, and the Linea from Turkey.
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