Fiat JV gets new driver

FIAT SpA last Friday appointed Yu Jiufeng as the chief executive officer and general manager of its Chinese joint venture as the Italian car maker tries to revive its fortune in the world's second-biggest auto market.

Yu, the former director of purchasing and director of manufacturing in Nanjing Fiat, is the third CEO of the venture in about two years and replaces Andrew Humberstone.

Nanjing Fiat, the joint venture between Nanjing Automobile Corporation and Fiat SpA, has been struggling with flat sales that were blamed on frequent leadership changes amid an uneasy partnership between the two parents and lack of attractive models.

"Yu has rich experience in managing Sino-foreign joint venture companies," Fiat said in a statement.

Yu has been the general manager of the Sino-Italian joint venture of NAC Group Nanjing Yuejin Automotive Brake System Co Ltd since 2005.

"The changes in management structure have been decided by NAC and Fiat to prepare and adapt the joint venture to its next phase of operation and development," Fiat said in the statement.

Humberstone, the former CEO & general manager of Nanjing Fiat, will assume the role of vice chairman and continue to support closely the development of Nanjing Fiat, the statement added.

"The personnel shakeup may reflect that Fiat is considering having less control over the money-losing car maker," said Cao He, an auto analyst from Mingzu Securities Co Ltd. "But I doubt whether it could help Fiat to drive out of its current unsatisfactorily business performance."

Nanjing Fiat started production of Fiat-branded cars in 2002 with four models in China.

But Nanjing Auto has injected more investment and resources in developing its self-branded models, drawing complaints from Fiat which threatened to end the partnership early this year.

A week earlier, Fiat announced it would form an equally-owned joint venture with Chery Automobile Co Ltd to make Alfa Romeo sedans and other models that carry the Chery badge after buying the Chinese car maker's engines.

The JV could have a designed capacity of 175,000 cars a year and production may start in 2009.