Bloomberg News - Fiat SpA (F), the Italian carmaker that runs Chrysler Group LLC, will sign a deal with China for its powertrain division to build gearboxes in the country, three people with direct knowledge of the plan said.
Fiat will announce the agreement June 3 in Rome, during a visit by China’s Vice President Xi Jinping, said the people, who declined to be named before an official statement.
Italy's Prime Minister Silvio Berlusconi will meet Xi Friday as part of the Chinese official’s visits to Italy, Cuba, Uruguay and Chile. Fiat Chairman John Elkann will meet Xi at a dinner with businesspeople in Milan Friday evening, one person said. A spokesman for the carmaker declined to comment.
Fiat, which owns 46 percent of Auburn Hills, Michigan-based Chrysler, is targeting fast-growing economies to counter losses in Europe, its biggest market. The Turin-based carmaker already gets most of its profit from Brazil and is also seeking to expand in Russia.
The carmaker will enter the Chinese market next year with a sedan model. Fiat is in the process of building its first car plant there in a joint venture with Guangzhou Automobile Group Co. Chief Executive Officer Sergio Marchionne plans also to introduce Jeep and Alfa brands in the country.
