Chery really to supply engines to Fiat this time

The last time we heard about this, we thought the deal was signed, sealed, and done. I guess this time it really is signed, sealed, and done.

ITALIAN automaker Fiat SpA has signed a deal to buy engines from China’s biggest domestic automaker, Chery Automobile Co, a state news agency reported today.

Chery will supply Fiat with 100,000 engines a year, the Xinhua News Agency reported.

The agreement by Chery, which is eager to expand abroad, comes just one month after the company sealed a deal to manufacture small cars for Chrysler Group.

Chery and Fiat signed a memorandum of understanding eight months ago, and auto industry media had reported that an engine supply deal was imminent.

“The agreement means that Fiat, who had been testing Chery’s engines during the past year, have recognized the technologies and quality of the engines developed by Chery,” Xinhua quoted Chery Deputy General Manager Zhou Biren as saying.

Zhou said the two companies are “exploring possibilities” on other cooperation, Xinhua reported, without giving details.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.