Fiat may have been given a bloody nose by the Chinese car market once before, but this is not putting them off from having another stab at the Chinese market place, this time with a new joint venture partner.

Fiat and Guangzhou Autos have been getting quite cozy with each other over the past 18 months with various technology trades happening, which has culminated in the latest joint venture. Fiat kept Guangzhou onside by selling them Fiat and Alpha Romeo platforms, on which Guangzhou Auto plan to build their small car range. The deal then lead to the JV being formed.

The new factory is expected to be able to produce 300,000 cars per year and will be producing 4 branded cars at the same time, (Fiat, Alfa Romeo, Changfeng, and Guangzhou) The new factory will be located in Changsha city, Hunan province, with work commening in August.