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Nanjing Auto, Fiat may go to divorce next month, company source says
Shanghai. November 28 (Gasgoo.com) – Fiat and Nanjing Auto Corporation will officially put an end to their relations next month, Chinese newspaper Beijing Youth Daily reported today.
"The two sides have reached a consensus that they will officially put an end to the joint venture next month and the agreement will be made public soon,” a Fiat source told the newspaper.
However, Duan Jianjun, Chief Business Officer of Nanjing Fiat Auto Co said that the negotiations are still under way. “No matter what results may come out at last, Fiat is determined to expand its operations in Chinese market. In fact, we are in talks with other Chinese automakers too.”
Another senior Fiat official, Jing Boqing, flatly denied that the divorce will happen. “We are struggle to save the joint venture,” he said.
The joint venture, Nanjing Fiat, planned to bring three models to Chinese market: Bravo, Linea and Grand-Punto. However the importing plan has been frozen before it is implemented.
Fiat has been seeking to bolster its presence in Chinese market by imported more cars; however this plan was opposed by Nanjing Auto, saying that importing is not a profitable business.
In the first half this year, Najing Fiat sold 11,265 vehicles, down 30 percent from one year earlier. Its product portfolio includes Perla, Fiat Palio, Fiat Weekend and Fiat Siena. The joint venture had originally planned to sell 50,000 vehicles this year.
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