Gasgoo.com (Shanghai June 28) - Earlier this week, Fiat China Chairman Franco Amadei made a surprise appearance in Hong Kong. According to a report appearing on auto.163.com today, Mr. Amadei was in the city to represent the company in the signing of a new cooperation agreement with the provincial government of Hunan.
The signing took place at the International Fair for Investment and Trade hosted by the Hunan government. Aside from Fiat, Lan Kwai Fong, CITIC Capital, China Resources and Wharf were all present at the event.
According to a source working with Jeep's domestic production program, the agreement between Fiat and the Hunan government stipulates that the manufacturer and its Chinese partner GAC invest a further five billion yuan ($807.39m) in its Guangqi Fiat passenger automobile project, located in Hunan's capital of Changsha. The funds will be used for manufacture of new models and technology, though which models and technology will be developed has yet to be confirmed. According to Mr. Amadei, Guangqi Fiat's Hunan-developed products will be made to the highest standards. He hopes that the Guangqi Fiat joint venture, alongside other enterprises such as Shanghai VW, will help promote development of Changsha's automobile and auto part industries.
Guangqi Fiat's quarterly production capacity reached 140,000 vehicles in 2012. The Viaggio (pictured) is currently the only model sold by the joint venture. Production and sales figures for the Viaggio for the first five months of this year totaled 15,002 units and 15,288 units, respectively. Chinese production of the Fiat Freemont SUV will begin next year, while plans to domestically manufacture a hatchback version of the Viaggio are reportedly also in the works.
Several commentators in the industry speculate that the new investment will be used by Fiat to manufacture Jeeps in the country. However, Fiat-Chrysler Asia-Pacific Public Relations Director Ding Ye stated that the agreement with the Hunan government will not cover Chinese production of Jeeps. Further commenting on the issue, she added that, "News that domestic production of Jeeps will begin in 2014 are not official statements made by Fiat."
Earlier this year, GAC Group General Manager Zeng Qinghong and Fiat-Chrysler Asia Pacific COO and Jeep Brand Manager Michael Manley signed an agreement to expand production of the Guangqi Fiat JV. A statement that Jeep will begin manufacturing vehicles in China in the latter half of 2014 was made at the signing. However, since then both GAC and Fiat have not made any further comments on the matter.
