Before on China Car Times we talked about how Chery had managed to grab a contract to manufacture Alfa Romeos for China, but the deal seems to have gone much further than anyone thought at that stage. It seems Chery and Fiat are going to set up a joint venture operation with each half owning 50% of the deal, the deal states that Chery will begin producing both Alfa Romeo and Fiat cars for use in the PRC. Its not unusual for foreign car manufacturers to be spread across two car makers, Honda, for example has JV’s with both Dongfeng and Guangzhou motor companies.
It seems that Fiat isnt happy with its current joint venture partner, Nanjing Automobiles, and hasn’t been happy for quite a while due to poor sales (it doesnt help that its flagship model, the Perla, is a flop) Chery and Fiat inked a deal just yesterday to supply engines to Fiat Fiat has been reaching out and talking with other Chinese motor manufacturers over the past year, obviously trying to prove a point that is dissatisfied with Nanjing Autos.
In 2009, Fiat and Chery aim to be producing 175,000 vehicles per year, these could be both for domestic and export use. The terms of the deal are currently unsure, but we have reported before that the Alfa Romeo will be made in China for local sales, and foreign sales.
But now that a merger, or joint venture, is in the making, maybe Fiat will stick around to take advantage of the SAIC might.
Chinese partners never get what they want from foreign car makers. hope this works out in Cherys favor!
Alfa Romeo, my car prefere