Fiat, Guangzhou form Chinese car JV

Italian automotive giant Fiat Automobiles SpA and China’s Guangzhou Automobile Group Co. Ltd. have agreed to form an equal joint venture (JV) in Changsha, Hunan Province’s capital, to produce cars in China. The two companies will invest more than €400 million (US$564.65 million), with each side owning equal shares. The joint venture aims to build a plant capable of producing 140,000 cars and 220,000 engines ever year after the first phase of the JV is completed. Annual maximum capacity is 250,000 cars and 300,000 engines. Italy’s Industry Minister Cladio Scajola revealed that the alliance shall play a pivotal role in the company’s plan for global expansion and in penetrating the Chinese market. (July 7, 2009)