Guangzhou and Fiat reach agreement on JV
According to todays media reports, Fiat and Guangzhou Auto have reached an agreement regarding the research and development of small vehicles in the PRC. Previously it was thought that due to the poor economy this year, Fiat were unwilling to commit further to Guangzhou at this stage. The plans for the JV have yet to pass official government approval, but it is expected that this wont be a large hurdle to pass.
Despite Fiat’s European success they have been unable to bring that success into the Chinese market place. Fiats troubles in China are well known, they have several failed JV’s behind them, the largest of course being the Nanjing-Fiat joint venture which saw initial high sales that later petered out, and then the Chery-Fiat joint venture which seems to have stalled so far.
Fiat finding its feet again in China would be a wonderful start, now that they’ve become a straight importer of cars into China their sales have faltered a great deal. Current imports are limited to the Grande Punto, Bravo, and the Linea range
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