Guangzhou Auto says likely to form JV with Fiat

Shanghai, March 9 (Gasgoo.com) Guangzhou Automobile Group Co. Ltd (GAC) general manager Zeng Qinghong recently said that the company has technical cooperation with Fiat, including product research and development. Further cooperation will focus on the passenger car segment, and meanwhile a Guangzhou-Fiat joint venture is quite possible, sina.com reported today.

Since terminating its Chinese partnership with Nanjing Auto (soon acquired by SAIC) at the end of 2007, Fiat has lacked a manufacturing base in China and has 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 local partners.

According to Fiat China, Fiat is still exploring the possibility of locally making its cars for the China market. The Italian automaker has approached Chery Auto, Changan Auto and Guangzhou Auto about jointly making Fiat models. It's unclear yet whether Chery will make any Fiat cars. Changan Suzuki will make Fiat's Sedici, a crossover model jointly developed by Fiat and Suzuki in Europe.

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 powertrain 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 possible Guangzhou Fiat venture.

In China's recently issued auto industry boost plan, Guangzhou Auto is listed as a candidate for becoming one of the top 10 Chinese auto groups though acquisitions and restructuring. Guangzhou Auto has contacted some overseas and domestic carmakers for possible acquisition or cooperation, Zeng said.