NDRC approves Fiat-Guangzhou JV

China’s National Development and Reform Commission (NDRC) has approved a vehicle manufacturing joint venture (JV) between Fiat and local automaker Guangzhou Automobile Industry Group (GAIG), reports Dow Jones International News. The NDRC reaffirmed in its statement that the Fiat-GAIG JV will produce Fiat-branded passenger cars, Guangzhou’s sport utility vehicles (SUVs), and 1400-cc engines for the Italian automaker, with a capacity of 140,000 vehicles and 220,000 engines per year. Zhang Fangyou, chairman of GAIG, recently said that construction of the Guangzhou plant to be used by the Fiat JV should begin by the end of November, with operations to start during 2011. The new plant will increase GAIG’s overall production capacity in China to more than 1 million units per annum. (November 26, 2009)