Fiat submits tieup plans with Chinese automakers

BEIJING (XFN-ASIA) - Fiat SpA has submitted three plans involving proposed tieups with three local automakers to the National Development and Reform Commission (NDRC), the central government's planning agency, the Beijing Times reported.

Citing unidentified sources, the newspaper said that Fiat intends to set up a joint venture either with Guangzhou Automobile Industry Group Co Ltd or with Chery Automobile Co Ltd.

It may also sign a deal with Chongqing Changan Suzuki Automobile Co Ltd, a joint venture between Chongqing Changan Automobile Co Ltd (SZA 000625; SZB 200625) and Japan's Suzuki Motor, to make a Fiat model in China.

Fiat and Suzuki jointly developed a sedan called the Sedici, which Suzuki has been selling in China.

An outcome is expected as early as next month, the report said, citing a source with Fiat.

It aded that it is now much easier for Fiat to expand in China with government approval as the economy is slowing.

Last year, Fiat signed an agreement with Chery to set up a 50:50 joint venture to produce and distribute Chery, Fiat and Alfa Romeo brands in China.

Due to weak sales, Fiat terminated its former China joint venture with Nanjing Automobile (Group) Corp at the end of last year, after the partner was acquired by rival Shanghai Automotive Industry Corp (SAIC).