Nanjing Autos, Fiat to stick 3 billion RMB each into their ailing JV!
Chinese Car News | CCTJuly 2, 20074:30 pm
Wow no sooner do we hear lots of bad news about the Fiat/Nanjing tie up, we hear good news! Where did Nanjing get 3 billion RMB from though? Will Nanjing sell off 49/50% of Nanjing MG to save its other investments?
CHINAS Nanjing Auto and Italys Fiat SpA have agreed to invest an additional 3 billion yuan (US$400 million) in their troubled joint venture Nanjing Fiat, Xinhua news agency reported today.
According to earlier reports, Fiat was considering ending its partnership with Nanjing Auto because the Chinese side had delayed planned investment in the joint venture.
The two sides also reportedly were at odds over a potential tie-up between Fiat and rival Chinese automaker Chery Automobile.
With the help of the government departments in Jiangsu province, the two companies became reconciled, the Xinhua report said, citing the Shanghai Securities News.
It said Nanjing Auto would have to rely on bank loans to make the investment in the Fiat venture because its financial resources were concentrated on resuscitating Britains MG Rover Group, which it acquired in 2005.
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- dragin says:July 2, 2007 at 9:08 pm
This doesnt come as a big surprise. Its been a pretty long standing relationship up until now, and so Nanjing is not about to let Fiat go away angry. For one, it would be a loss of face for Nanjing on the global scene.
But the next question becomes, how thinly can Nanjing spread itself?
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