Guangzhou-Fiat gains government recognition production to start in 2011
Published March 16, 2010
Yesterday the Guangzhou-Fiat joint venture officially gained recognition from the central government and will begin production of Fiat vehicles in China by September 2011.
The automotive venture will be based in Hunan province at the Changsha Economic Zone and will be carrying 5 billion RMB of investment into the area, and has registered capital of 1.8 billion RMB. The joint venture has been set up as a 50:50 joint venture according to Hunan provincial business bureau who awarded the joint venture.
The JV is expected to start operations as soon as possible with the development of new factories and machinery being imported and sourced locally to hit the September 2011 goal for starting production. The Fiat Linea will be the first Fiat car to be produced in China since the implosion of the Fiat-Nanjing Auto joint venture several years ago, the Linea was chosen for production first as Fiat believes it is the best car in their line up to meet with Chinese consumers expectations.
The JV will consist of full car production, and engine production as well as a research center. Fiat are aiming to produce 140,000 cars to be begin with which will be then increased to 250,000 cars. Engine production will initially start high at 220,000 units but then will be increased to 300,000 units.