Fiat JV with Guangzhou Auto not to make Fiat 500

Published: 14 Jul 2009 17:50:38 PST

Shanghai, July 14 (Gasgoo.com) The leading Italian carmaker Fiat signed an agreement with the Guangzhou Automobile Group last week to build a 50:50 joint venture facility in Changsha city, capital of central China's Hunan province, Chinese media reported.

The 700,000-sqm factory will be able to produce 250,000 cars and 300,000 engines annually when it begins production in 2011. The plant will focus on economy cars for the Chinese market like the Linea compact car. But the renowned Fiat 500 will not be introduced to the JV for production, while Italy-Chrysler will build and sell four versions of the tiny Fiat 500 in North America starting in 2011.

Fiat has committed EUR400 million in the venture that will hopefully give the carmaker a solid presence in the world's most promising auto market. International carmakers are hoping that growing Chinese auto sales will offset declining demand from traditional Western markets.

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