Fiat to set up $630 mln JV with Guangzhou Auto

Shanghai, May 19 (Gasgoo.com) Fiat SpA is planning to set up a 4.3 billion yuan ($630 million) joint venture in China with Guangzhou Automobile Group Co in Panyu, Guangdong, according to caijing.com, citing a government web site.

The project is expected to start operation in 2011, with an annual production capacity of 140,000 vehicles and 220,000 engines, the report said, quoting a statement posted on the Web site of China's Ministry of Environmental Protection.

In respond to a phone inquiry from Caijing, Jiang Ping, deputy general manager of Guangzhou Auto, said the two sides are holding deep negotiations on the project.

The project is expected to win central government approval as early as this month, a South China Morning Post report said.

Fiat currently shares technology with Guangzhou Auto, China's currently most profitable automaker. Fiat's former joint venture with Nanjing Automobile Group Corp collapsed in late 2007 when the Chinese partner was bought by SAIC Motor Corp.