Fiat to ask government permission for Chery JV

Shanghai, April 3 (Gasgoo.com) Italian automaker Fiat Group Automobiles is close to asking the Chinese government for permission for a joint venture (JV) between itself and Chery, reports Automotive News Europe.

Sergio Marchionne, the chief executive officer (CEO) of the Fiat Group, told the trade publication that the pair had almost finished discussing the operational details and were near to requesting the proper authorisation to set up the JV.

Fiat signed a memorandum of understanding with Chery to produce Alfa Romeo and Fiat brand cars for the Chinese market last August. The sides said they intend to produce 175,000 Fiat and Alfa Romeo brand autos beginning in 2009.

The deals appear to mark a strategy shift for Fiat, after Sergio Marchionne said another Chinese partner, Nanjing Automobile, had fallen short on its pledged investment.

The move also came after the Chinese firm and Fiat announced last August that they had finalized an engine purchase deal, enabling the Chinese carmaker to supply more than 100,000 1.6- and 1.8-liter petrol engines per year for Fiat cars assembled in China and abroad.