Fiat builds tech cooperation with Guangzhou Auto

Shanghai, August 26 (Gasgoo.com)Fiat SpA has agreed to establish technical cooperation relationship with Guangzhou Auto, the Beijing News reported today, citing a senior official of Fiat China.

Under the condition of anonymity, the official said Fiat may expand its technical cooperation to a full fledged scale in future considering Guanghzou Auto's marketing and profit-making capacities, but it all depends on the progress of Fiat's talks with Chery.

Paolo Arpellino, chief representative of Fiat's China office, confirmed that no other project such as building a JV was discussed other than the technical cooperation program for the time being.

He added that the present technical partnership will focus on developing Guangzhou Auto's own brand. No other details on the deal is available currently.

Fiat's talks with Chery were reportedly disrupted after the two sides differ on whether to locally build Alfa Romeo in China.

Last week Fiat agreed to build a 1.8 billion yuan ($263 million) engine plant in southwestern China's Chongqing municipality with annual capacity of 100,000 units.

According to the memorandum of understanding signed by the Italian carmaker, about 70 percent of the light diesel engines made at the facility will be exported.