China's economic planner said Wednesday it approved a vehicle-making joint venture between Guangzhou Automobile Group and Fiat SpA , and the restructuring of Guangzhou Auto and Hunan Changfeng Motors Co.
The joint venture between Fiat and Guangzhou Auto, announced in July, will make Fiat-brand passenger vehicles, Guangzhou Auto-brand sport-utility vehicles and Fiat's 1.4-liter engines, the National Development and Reform Commission said in a statement on its Web site.
The venture will have an annual production capacity of 140,000 vehicles and 220,000 engines.
Guangzhou Auto reached a deal in May to buy a 29% stake in Hunan Changfeng from Changfeng (Group) Co. to become the sport-utility maker's biggest shareholder.
