Chery says has not shelved JV project with Fiat

Shanghai, March 19 (Gasgoo.com) China's Chery Automobile Co has delayed a joint venture project with Italian automaker Fiat SpA but it hasn't drop the project yet, according to a Reuters report, quoting words of the company's president.

Chairman Yin Tongyao told reporters that the joint venture project would not be started this year as scheduled since the global financial crisis has made it hard for foreign automakers to make further investment.

"We have slowed down the project owing to changing conditions but we have not shelved the plan completely, " Yin was cited by Reuters as saying.

Asked whether Chery will buy a foreign car brand such as Ford Motor's Volvo, Yin said Chery may consider a takeover if no one -- no other Chinese automaker -- is interested in the brand, but Chery won't fight for it.

Separately, Fiat and Guangzhou Automobile Industry Group (GAIC) have reportedly arrived at outlined plans earlier this week for a 50:50 joint venture to produce and distribute Fiat small cars.