FAW sticking their money down for Bertone?

---

Many of the big players in the Chinese market place have been making cars for years, however, these have been largely cars from other brands – SAIC with GM and VW, FAW with VW and Toyota, Dongfeng with PSA and Honda etc etc The only reason the big Chinese manufacturers got so big in the first place, was due to a bit of clever manovouring by the central government. The central government declared that any foreign car maker wishing to sell cars made in China to Chinese consumers must pair up with a domestic car manufacturer. Billions were made in a very short time, especially as the big Chinese car makers are partially or wholly owned by the state.

Many of the big car marques now realize they have masses of talent, cash, and experience in making quality cars from quality manufactuers and are already planning to release their own branded cars, SAIC has Roewe, Nanjing has MG (although SAIC owns them too) Dongfeng has released a few Dongfeng branded cars, and FAW released Besturn/Bentung a year or so ago. FAW, however, one to go one step further and buy struggling custom car maker and design house, Bertone.

TURIN – China FAW Group Corp. is bidding to buy struggling Italian contract manufacturer Carrozzeria Bertone.

FAW formally made an offer to three bankruptcy commissioners who are currently assessing potential bids for Bertone, two sources told Automotive News Europe under condition of anonymity.

According to one of the sources, FAW wants to make Carrozzeria Bertone its first manufacturing center for sales in Europe.

Carrozzeria Bertone has an annual capacity of 70,000 units in two shifts. With three shifts, capacity could reach 100,000 units a year.

China FAW Group Corp. is one of China’s largest carmakers.

FAW has joint ventures with the VW group and Toyota. It also produces under license vehicles for Daihatsu and Mazda.

FAW does not currently vehicles in western or central Europe.

But last year FAW sold 2,989 units in Russia, up from 1,288 in 2006, according to the Association of European Businesses in Russia.

Bertone, Italy’s oldest vehicle contract manufacturer, halted volume production in December 2005. Despite desperate efforts it has not found new car-assembly work since.

After failed attempts to sell Carrozzeria Bertone in December 2007 and in February, a Turin bankruptcy court appointed the commissioners.

According to Italian media reports, other bidders for Bertone include:

• DR Motor, which builds an SUV based on the Chery Tiggo in Italy

• PCL Group, a German engineering group controlled by Arkk of Japan

• Design and engineering company Italdesign-Giugiaro of Turin

• An unspecified Indian carmaker thought to be Mahindra & Mahindra