Fiat CEO Sergio Marchionne has confirmed that the carmaker is talking to potential new partners in China as it attempts to kick start its presence in the world's second-largest car market and find Chinese firms that can help it finally make an impact.

Fiat CEO Sergio Marchionne has confirmed that the carmaker is talking to potential new partners in China as it attempts to kick start its presence in the world's second-largest car market and find Chinese firms that can help it finally make an impact.

On the sidelines of an automotive industry conference in Delhi yesterday Marchionne told reporters in relation to China: "We have had a number of issues, we have to firm up other partners." It comes after Fiat's China boss Paolo Arpellino last week told Automotive News Europe: "We are always open to other partnerships and exploring opportunities under any possible form in a market as important as China."

Marchionne also admitted in India yesterday that his sales target of 300,000 units per year in China by 2010 would probably have to be put back. He had little better news for Fiat's home market which has suffered major year-on-year falls in recent months. "For Italy, 2008 will be a painful year, 2009 will be better, the rest of Europe won't see a stellar performance in 2008." However Marchionne had more positive comments for sales globally, saying that "We are handling the weakness in Europe with strong performance in the BRIC [Brazil, Russia, India and China] economies."

Last week news broke that Fiat in talks with one of China's smaller car industry players, Guangzhou Automobile Industry Group. Fiat has previously signed a Memorandum of Understanding with Chey Automobile Co which envisions the production of Alfa Romeo models in China as well as Fiat buying the Chinese firm's powertrains. However talks with Chery appear to be progressing slowly and this delay comes on top of a failed partnership with Nanjing Auto which was finally dissolved at the end of last year.

Fiat has swiftly rebutted claims that the Chery deal, which was expected to get underway with Chinese production of the Alfa 159 fitted with a Chery-sourced 1.6-litre petrol engine, was flagging: "Fiat's current partnership with Chery is ongoing and we are fully satisfied with what we have jointly achieved so far," Paolo Arpellino, Fiat's chief of China operations, told ANE in a statement last week.

According to ANE the remit of the discussions between Guangzhou Auto and Fiat Group relate to technical knowledge, with the latter set to help the former in developing its own brand range of cars. "We have discussed a technical cooperation with Guangzhou Automobile," Arpellino told ANE which believes that Fiat is likely to sell an existing platform to Guangzhou Auto.