Fiat to break joint venture ties with Nanjing
The Fiat group CEO Sergio Marchionne has issued a formal announcement saying that Fiat Group will no longer put new models into production at Nanjing Fiat, a joint venture established between Fiat and NAC (Nanjing Automobile Corporation). Fiat will withdraw completely from the management team, and NAC will become Fiat's Chinese OEM counterpart,
Early June this year, Fiat CEO Sergio Marchionne visited China to hold further discussions on the Nanjing Fiat development plan. Fiat appears certain to break off its joint venture ties with Nanjing Fiat if the Chinese company fails to fulfil its promised investment in the project. The Italian giant will proceed to seek another joint venture partner in China.
Earlier, Fiat group planned to invest 500 million euros in the next five years, targeting to produce 300,000 units in 2010.
Fiat has set up a global procurement center in Shanghai soon after Marchionne's announcement. According to the plan, Fiat's sourcing in China will reach 1.5 billion euros by the year 2010.
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