Fiat to mend Nanjing Auto ties

Italy's Fiat and China's Nanjing Auto has come to an agreement to invest an extra three billion yuan to their troubled joint venture Nanjing Fiat, state media reported yesterday.

The pledge came about as a result of concessions made by Nanjing Auto, but since the Chinese automaker's financial resources have been concentrated on the MG project, it will have to turn to bank credit for financing, Xinhua said.

According to earlier reports, Fiat had hoped to invest 500 million Euro to its joint venture in the coming five years and realize a total sales of 300,0000 by 2010. Fiat's mid-range D200 is also reported to be produced here. Nanjing Auto said it had delayed planned investment in the joint venture because of a potential tie-up between Fiat and rival Chinese automaker Chery Automobile.