Gasgoo.com (Shanghai June 21) - Fiat will cooperate with Guangzhou-based GAC Group and Hangzhou Advance Gearbox Group to build a new factory producing DSG transmissions, nddaily.com reported today. Fiat has agreed to invest 2.3 billion yuan ($337.4m) in the new project.
The new factory, which will help equip Fiat vehicles, including the upcoming C-Medium (pictured), will begin operation in 2013 at the earliest.
GAC Group bought Hangzhou Advance from Nanjing Auto in mid-2009. The company boasts an annual production volume of over 500,000 gearbox systems.
Fiat reportedly hopes to sell 300,000 vehicles in China in 2014, 2 percent of the total domestic marketplace.
