Fiat plans to expand into auto parts business in China

Shanghai, June 10 (Gasgoo.com) While Guangzhou Auto and Fiat are teaming up to prepare the mass production of new cars, Italian carmaker Fiat Group has quietly started its expansion into auto parts business in China.

At the beginning of June, SAIC Magneti Marelli Powertrain Co Ltd (SMMP) was officially put into operation in Shanghai's Jiading Industrial Park. SMMP is a joint venture established by Fiat-owned Magneti Marelli Auto Parts Group and Shanghai Automotive Transmission Co, Ltd.

Since 1996, Magneti Marelli has established three wholly owned factories in China. SMMP is its first joint venture, fourth plant in China.

Data show that Magneti Marelli grows rapidly in China. Its turnover in 2007 was 76.4 million euros, reaching 99 million euros in 2008, up to 162 million euros last year.

"The rapid growth in China's auto market led to the increased investment. Wuhu factory has started using its new plant, and Guangzhou factory has finished its expansion and will be put into operation next month. With the new SMMP factory put into use, the company's production capacity in China will be doubled," said Magneti Marelli CEO Eugenio Razelli.

It is reported that Magneti Marelli's total investment over the past decade is more than 160 million euros. The new investment in the factories in Wuhu and Guangzhou increased 20%~30% on the previous level. The amount of its investment in SMMP testified to its obviously accelerated pace of investment in China.