Great Wall rejects Fiat claim

Fiat is suing the Hebei-based automaker in China and Europe in connection with the Peri, a Fiat spokeswoman said, without giving further details other than to reiterate that the two models looked alike.

Great Wall spokesman Shang Yugui dismissed Fiat's allegation yesterday.

"It took us three years and 300 million yuan (HK$309.7 million) to develop the Peri," Shang said.

He said the delay in launching the new model - originally scheduled for this month - was due to the approval process with regulators.

"The legal action shouldn't affect the sales of [Great Wall]. The management ... expects a delay in production of the line until next year," Sun Hung Kai Securities analyst Vivien Chan told The Standard. Shang said: "Once we get the license, we will roll out the Peri in China and in nearly 80 countries worldwide - including Italy."

Great Wall plans to price the Peri at 40,000 yuan to 50,000 yuan, pitting it against rival Chery Automobile's hot- selling QQ, which is priced from 40,000 to 200,000 yuan.

Other Chinese automakers including Geely Automobile Holdings (0175) and Brilliance Jinbei, a unit of Brilliance Automotive Holdings (1114), also intend to expand into overseas markets.

Great Wall shares closed yesterday at HK$12.46, down 5.9 percent.