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Fiat seeks partnership with Chery on passenger vehicles
Shanghai. December 29 (Gasgoo.com) – After ending an eight-year old unsuccessful partnership with Nanjing Auto, Fiat is seeking to choose another partner on passenger vehicles business. And this time, Chery becomes an attractive partner to Fiat.
Sergio Marchionne, CEO of Fiat Group and Fiat Group Automobiles said Fiat would quicken paces in introducing new model to Chinese market while waiting to finalize a partnership on passenger vehicle program with Chery.
Marchionne said Fiat will continue to cooperate with Nanjing Auto on commercial vehicle programs while ending a partnership on passenger vehicle programs.
The Italy-based Fiat Group Automobiles and Chery Automobiles have signed a memorandum of understanding in August to establish a passenger car 50:50 joint venture; but there are no further progress reported so far, media reports said.
With production to start in 2009, the joint venture will produce and distribute Alfa Romeo & Fiat cars of Fiat Group Automobiles and Chery's brand cars. The JV is expected to produce 175,000 cars per annum. Production is expected to begin in 2009, the reports said.
In August, Fiat and Chery also signed an engine supply contract. Under the contract, Chery will provide 100,000 gas engines annually to Fiat. These 1.6 L and 1.8 L gas engines will be equipped on Fiat automobiles manufactured globally.
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