Fiat to Introduce Three Models to Chinese Market This Year

SHANGHAI - January 8, 2008:

Italian automaker Fiat plans to introduce three models in imported units to Chinese market in 2008, the company’s chief representative said.

"Fiat will strengthen its operation in Chinese market by importing more car models," said Paolo Arpellino. “We are planning to introduce three models in 2008. These models include Grande Punto, Linea and Bravo.”

Fiat also plans to locally produce Linea and Grande Punto China in 2009, Arpellino said. The two models will be locally produced in Fiat’s joint venture with Chery, according to a Beijing News report.

"In the short term, Fiat will have to rely on importing new models to boost its operations in China,” said Duan Jianjun, Fiat’s chief China Business Officer. “However, in the long run, we will shift to local production business.”

In August last year, Fiat and Chery has signed a memorandum of understanding on a joint venture automaker. The joint venture project, scheduled to operate in 2009, will have an annual capacity of 175,000 units.

Linea will be the first Fiat models to be produced in the Fiat-Chery joint venture. The model will be equipped with a 1.4 liter engine. When imported to Chinese market, it will be priced at about RMB 200,000 ($27,400). The model will compete with Ford Focus, Peugeot 307, and Buick Excelle in Chinese market.

"The annual capacity of Linea and Grande Punto alone will exceed Nanjing Fiat’s capacity of 30,000 units,¡”Duan said, adding that “Alfa Romeo will also be locally produced in the joint venture plant in the future.”

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html