Guangzhou Auto, Fiat set to sign deal on projects
Guangzhou Automobile Group Co. is likely to sign an agreement on Monday with Fiat SpA covering "comprehensive" cooperation on a number of projects, a person with knowledge of the matter said Saturday.
The person said it will be part of the package of deals expected to be signed at a business forum in Rome during Chinese President Hu Jintao's state visit to Italy. He declined to give more details.
Representatives from the companies weren't immediately available for comment.
A statement on China's Ministry of Environmental Protection Web site disclosed in May that Guangzhou Auto was planning to form a CNY4.27 billion ($626 million) passenger vehicle-making joint venture with Fiat.
If the plan succeeds, the joint venture will be a new chapter for the Italian auto maker, which has struggled to make inroads in China after its partnership with Nanjing Automobile Corp. was dissolved in late 2007.
China's Ministry of Commerce is leading a delegation of Chinese business representatives in the country's fourth purchasing and investment mission to Europe this year.
Similar trips to countries including Germany, Switzerland, Spain, and the U.K. resulted in billions of dollars worth of deals earlier this year.
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