Guangzhou Auto to build Fiat car project in August

Shanghai, July 3 (Gasgoo.com) Construction at Fiat's car production venture with Guangzhou Auto is scheduled to begin in August. The facility, with annual capacity of 140,000 cars and 220,000 engines and based in the central Chinese city of Changsha, still requires government approval, local media reported today.

Fiat Auto is also planning to introduce its low-emission engine to China for local production to equip its China-made compact sedans. The two sides of the venture have denied reports that their new project will use the existing facility and capacity of Changfeng Motor -- Guangzhou Auto's newly-acquired subsidiary in Changsha.

Fiat and Guangzhou Auto have been cooperating since the beginning of last year, with various technology trades happening, which has culminated in the latest joint venture. Guangzhou Auto has secured the Fiat and Alpha Romeo platforms to build its small car range. The deal then led to the JV project in Changsha.

The new factory is expected to produce 140,000 sedans of the Linea series per year. With a joint investment of 4.27 billion yuan ($625.2 million), the Changsha-based Fiat project will also have an annual output of 220,000 low-emission engines. The facility still requires the government's regulatory approval.

Earlier last month, Guangzhou Auto decided to move its planned Fiat venture to Changsha, capital of Hunan province, from Panyu, Guangdong province, southern China. The Panyu production base will be only making the Chinese carmaker's self-developed brands.