Fiat may set a JV with Saic

Italian automaker Fiat's CEO Sergio Marchionne has said that they missed out on the huge opportunity China had provided over the years and they are now considering seeking an alliance with another automaker in China. 

The Italian carmaker may hold a discussion with Shanghai Automotive Industry Corp regarding the partnership in the near future, but Sources from Saic denied the possibilities of such cooperation, saying they would better put focus on their existing operations.

Reports from China Auto Industry Association show that Nanjing Fiat monthly sales lingered at one or two thousands in recent months, while only 140 Perla vehicles were sold last month. The market share of the joint venture was 0.7% in 2006, with 30,668 vehicles being sold.

On the contrary The Shanghai Auto Industry Corporation (SAIC), based on its two joint ventures with General Motors and Volkswagon, has claimed a leading sales result for years. Now the launch of Roewe and Shuanglong-badge cars will bring new opportunities for the company.

Fiat has already cooperated with Saic on heavy trucks through its Iveco division. Chinese laws require foreign car makers that want to produce cars locally, to do so in the form of a JV. Though Fiat come across difficulties in the sedan market in China, the auto maker may still possible to introduce the latest, most suitable product to the Chinese market once such an alliance is made.