Chery to win share in Fiat's Nanjing venture

Sources from Chery Automobile, Fiat and Nanjing Automobile Group said the three parts have been discussing a possible future for the venture of Italia automaker and Nanjing Auto. Currently Fiat has decided to sell one part shares of its Nanjing venture to Chery, who will become a participator of the venture's reorganization.

If the plan is successfully implemented, Chery will become the first home-grown player to join the restructure process of a transnational joint venture.

"The idea was proposed a year ago but the discussion of it has not been commenced until the recent months," said a senior Chery executive. It is also reported that Chery has sent a management delegation to the venture and made a financial assessment to its operating conditions.

Chery chief executive Yin Tongyao unveiled earlier this month that Chery is considering a possible purchase of a joint auto venture.

As Fiat's car venture with Nanjing Auto has been losing money, Fiat is busy seeking a new cooperator to gain profits.

Fiat has picked Chery as a potential partner to expand in the Chinese market. Earlier the two parts have signed a memorandum that Fiat would buy up to 100,000 engines from Chery each year. The two parts are discussing to manufacture Alfa Romeo by Chery using Fiat's technologies.