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Chery in talks to tie with Fiat

By Gong Zhengzheng (China Daily)
Updated: 2007-02-01 09:04

It sold 30,700 cars last year, down 7 percent from 2006, according to industry data. In the meantime, sales of China-made vehicles grew by a quarter to 7.22 million units with that of passenger cars surging 35.6 percent to 4.26 million units.

"Fiat seems unsatisfied with its partnership with Nanjing Automobile. So it hopes to find a new partner in China," Song told China Daily.

"It could take advantage of Chery's low costs and improving quality if they team up," he added.

Many global automakers, such as General Motors, Volkswagen, Toyota and Honda, have two car joint ventures in China with different local partners.

And Nanjing Automobile appears to be shifting to its acquired British brand, MG, in the passenger car area.

The company said on Tuesday it would begin making an MG sedan in March at its base of Nanjing, and an MG sports car in May in England.

It plans to assemble a total of 200,000 MG vehicles at the two locations annually within the next five years.

(China Daily 02/01/2007 page14)