Fiat's new Chinese ventures awaiting approval

Shanghai, February 5 (Gasgoo.com) Italian automaker Fiat has found new Chinese partners after its Nanjing fiasco. Its multiple tie-ups with Chery Auto, Guangzhou Auto and Changan Suzuki are awaiting the approval of China’s auto regulatory bodies, reported 21st Century Business Herald today. The joint venture applications may have results next month.

At the end of 2007, Fiat terminated its Chinese partnership with Nanjing Auto, which was soon acquired by China's auto giant SAIC. And in 2008, Fiat transferred some of its equipment and technologies to Zotye Auto, and imported several of its new models such as Linea and Grande Punto to China to keep its presence in the Chinese market while seeking new partners in the country.

Back in August 2007, Fiat and Chery signed an initial deal to form a joint venture that could start operation in 2009. But the two companies were divided on some detail on what models to make in the JV: Chery Auto hoped to make Fiat's Alfa Romeo model only, but Fiat required Chery to introduce more Fiat models. That hassle has delayed their final agreement at some cost.

In late 2008, Guangzhou Auto inked a formal pact with Fiat to develop its own-brand model on the Alfa Romeo platform. Guangzhou Auto has bought the technologies of Fiat's Alfa Romeo model, including its platform and power system.

The Linea and Grande Punto that are now sold in China as imported Fiat models, as well as the Palio that was previously made in Nanjing Fiat, may be produced in the coming Guangzhou Fiat venture. It’s unclear yet what Fiat models Chery will make.

Changan Suzuki will make Fiat's Sedici, a crossover model jointly developed by Fiat and Suzuki in Europe. Suzuki's European facility has OEM operations for Fiat, and the Japanese carmaker's Chinese venture said it could do the same job.