The Fiat Linea is set to be the first Fiat to be made in China in two years via the recently signed and sealed Fiat-Guangzhou Auto JV.

The JV is still awaiting central government approval, but this hurdle is likely to be an easy one to cross, as Fiat are expected to invest a lot of money into Guangzhou at a time when the local economy is suffering.

The production base will be set up in the Pangyu district of Guangzhou City, previously it was understood that Fiat would set up shop in Guangzhou’s recently purchased Changfeng factories, but it seems that Fiat-Guangzhou have plans to produce their cars in a new facility.

The Fiat-Guangzhou JV is still on track to produce 140,000 vehicles together, and to be fully operational by 2011.

The Fiat Linea is a step in the right direction for Fiat, who seem to have finally reacted to the market after stumbling for several years with their woefully outclassed third world cars (aka, their cars for developing markets)